Investors with a long-term perspective can hold Crompton Greaves with a stop-loss at Rs.125

Crompton Greaves (Rs.167): The stock encountered significant long-term resistance at around Rs.215, which is also the 50 per cent Fibonacci retracement level of prior downtrend, in June 2014. After repeated testing, the stock failed to break this resistance decisively and started falling from September.

Since then, the stock has been on an intermediate-term downtrend. But the key support at Rs.160 provided base in early February 2015.

Within this downtrend, the stock has been moving sideways with a negative bias over the past four months.

Strong downward breakthrough of the support level of ₹160 will strengthen the downtrend and pull the stock down to Rs.135-140 band in the medium term. Only a strong rally above the trend-deciding level of ₹190 will alter the downtrend and take the stock northwards to Rs.215 levels.

For long-term bullish momentum, the stock needs to emphatically break the key resistance at Rs.215. Such a breakthrough can take the stock higher to Rs.250 in the long run. Investors with a long-term perspective can hold the stock with a stop-loss at Rs.125 levels.