The stock that is trading near its short term resistance is CROMPGREAV (Crompton Greaves Ltd.), On daily charts we have found resistance for this stock near 136 to 139 zone and luckily we have spotted this opportunity to trade short on CROMPGREAV December futures. Traders can enter short positions in range 136 to 139 on CROMPGREAV December future contract, for positional targets as 130.1 and then 127. We will place our stop loss for this trade setup just above 140 level to protect us from counter trend move. Looking at the RSI indicator on Weekly chart we seen its still below 50 level, hence stock is bearish in short term and may consolidate for some time before any up move. Also this stock is yet to form a base of consolidation here. Open interest data suggest futures has added about 20,000 shares in open interest.
Speaking about the global markets, we have seen the NFP data that was released on last Friday in US, was inline with expectation, but major concern was the average hourly salary, as it was lower. Looking at Europe, we have seen the unemployment rate was at its highest, which was big reason to worry about; So we have two different economies where one is registering decent growth and other is going through slowest growth kind of scenario. Due to this we will see USD index going up in short term and eventually create pressure in other global currencies, even India. This is our short term outlook on markets. We advice traders to beware of the selling pressure that might hit markets in short term. Trader may take short positions in Nifty futures below 5120 for down side targets as 5010 and then 4960 levels in 4 – 5days. placing a tight stop loss order at 5155 level.
Crompton Greaves Stock trading (tips): Sell CROMPGREAV December Future in range 136 to 139 zone for targets as 130.1 and then 127 levels. Stop can be placed around 140 levels. Traders must keep this in mind that this is positional trade with view of at least 3 to 4 days.