CROMPTON - Technical Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Technical Rating: 3.0

Let’s break down Crompton Greaves Consumer Electricals Ltd. from a short-term technical viewpoint

📉 Trend Status

Current Price: ₹328 is below both the 50 DMA (₹344) and 200 DMA (₹356)

The stock has fallen ~32% from its 52-week high of ₹484

Trend Analysis: Reversing into a downtrend, with signs of oversold exhaustion

💹 Momentum Indicators

RSI: 36.8 – Close to the oversold zone; this could attract bargain-hunters for a short-term bounce

MACD: -4.56 – Bearish divergence confirms downward pressure

Volume: 12.97L vs 15.23L avg – Declining volume signals weak buying conviction and lack of momentum

Together, these indicators suggest a loss of bullish momentum and no clear reversal yet.

📊 Moving Average Trend

DMA Level (₹) Commentary

50 DMA 344 Resistance zone

200 DMA 356 Long-term hurdle

Price is below both → short-term bias remains bearish

📎 Bollinger Bands

Implied placement: price likely near lower band

Sign of oversold condition and low volatility, which could mean a breakout or breakdown is near

📍 Short-Term Price Zones

Type Range (₹) Strategy

Support Zone 310–320 Accumulation zone / reversal watch

Entry Range 320–330 Early swing entries if volume rises

Resistance 345–360 Key hurdles — 50/200 DMA cluster

Target Zone 370–385 Short-term upside if reversal holds

🧠 Strategic Considerations

FII Holding ↓ 1.13% → Reduced institutional confidence

DII Holding ↑ 1.88% → Domestic investors possibly bottom-fishing

Quarterly Profit ↑ 27.0% → Positive fundamental trend

Negative PEG (-20.3) → Reflects challenges in sustainable growth despite high P/E

🧭 Conclusion

Crompton is in a downtrend, hovering near a critical support zone with oversold signals. Momentum remains weak, and price action is still under key moving averages. A breakout above ₹345–₹360 on volume would flip sentiment bullish. Till then, cautious entries near ₹320 with stop-loss at ₹305 may suit swing traders.

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