CreditAccess Grameen: A Turnaround in Sight Short Term Trading Advice by Goodluck Capital
Buy CreditAccess Grameen
Buy Range- 990 - 1030
Target- 1200 - 1250
StopLoss- below 845
Upside Potential- 20% -25%
Approx trade duration 20 - 25 days
◉ Technical Analysis
● After a substantial decline, the stock is now showing signs of recovery, bouncing back from its trendline support.
● Additionally, the increasing trading volume is reinforcing the likelihood of a turnaround, indicating a potential reversal in the stock's fortunes.
◉ Fundamental Rationale
The Reserve Bank of India's (RBI) recent liquidity infusion of over ₹1.5 lakh crore is expected to boost economic growth and create a favorable environment for microfinance institutions (MFIs) like CreditAccess Grameen. Here are the key benefits:
● Improved Liquidity for Lending: The injection will help MFIs meet their short-term funding requirements, reducing their reliance on expensive sources of funding.
● Potential Interest Rate Cuts: Lower interest rates will enable CreditAccess Grameen to access cheaper capital, making loans more affordable for low-income customers.
● Boost to Rural Economy: Budget 2025's focus on rural development through increased government spending will enhance the repayment capacity of borrowers, reducing credit risks for MFIs. This will create a favorable environment for CreditAccess Grameen to operate and expand their services.
Tradingadvice
Stocks in Focus: Biocon, Bharat Dynamics & Apollo Micro Systems1. Biocon NSE:BIOCON
● The stock reached a peak of ₹483 in December 2020, then experienced a downturn, entered a prolonged consolidation phase.
● This phase led to the formation of an Inverted Head & Shoulder pattern.
● Following a recent breakout, the stock is now poised for upward movement.
2. Bharat Dynamics NSE:BDL
● After hitting an all-time high around ₹1,795, the stock saw a decline of nearly 50% and eventually found support at ₹890.
● From this point, the price rebounded and recently surpassed its trendline resistance, setting the stage for substantial future gains.
3. Apollo Micro Systems NSE:APOLLO
● The stock underwent significant consolidation after marking an all-time high near ₹161.
● With a fresh breakout, the price is now set to exceed its past high and make new highs.