After remaining under pressure, shares of Crompton Greaves Consumer Electricals regained strength in Wednesday’s trade, gaining 4% to ₹204 apiece. The rebound also caught the attention of Choice Equity Broking, with the brokerage expecting the recovery to sustain amid a favourable technical setup.
The brokerage said that the stock has taken strong multi-year horizontal support around the ₹190– ₹200 zone (which aligns with the key 0.786 Fibonacci retracement level near ₹193.35). Historically, this crucial demand area has triggered robust bullish rebounds, highlighting strong buying interest and price rejection at lower levels.
It added that momentum indicators further support a potential upside reversal, with the monthly Relative Strength Index (RSI) at 36.25, approaching oversold territory where historical price bounces have frequently originated. Holding firmly above this demand floor paves the way for a recovery trajectory towards ₹230.
For positional trades, the brokerage said the stock can be considered around ₹202.80 with a stop-loss set at ₹189, below the multi-year support zone, offering a favorable risk-to-reward ratio for a recovery target of ₹230.
Domestic brokerage firms have largely maintained their Buy ratings on Crompton Greaves Consumer Electricals following its September-quarter results, with target prices ranging from ₹275 to ₹300.