Long Term Equity Call - COMPTON 30 Sept 2016

LONG TERM EQUITY PICK - CROMPTON GREAVES LTD. (CROMPTON)

CMP - 75.25

Past 1 year Trend

1. Due to the news of Indian army attacking in Pakistan terrorist Camps in PoK, the market fell dramatically on 29th Sept 2016. As far as we checked, all the Stop Losses were triggered. But there is no need to panic since it can be considered as a correction. Keep holding your investments as they will get back to track.
2. Similarly, this share also showed a fall in market value, when it went as low as 69 and closed at around 75. This has made the stock undervalued because it has been showing a Bullish Trend for last 1 year (as can be seen in the Chart above). 
3. Currently all the Technical Indicators suggest Selling the share, but this is the scenario for majority of stock.

Lets take a closer look at trend - 

Past 6 months Trend

1. Has been rising slowly and steadily with small corrections. (See mark ups above)
2. Has inclined Support and Resistance.
3. Expected to gain next resistance at 92--94. But since the rise is low, will take some time to reach the Target.

Target 1 - 92--94

Then a correction can be expected up to level of 86--83

Target 2 - 116--120

Stop Loss - If closes below 69.

Keep a watch on your investments since the market is uncertain and highly volatile. The stocks show corrections in Long phases. Patience is key for Long Term investments.

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