#CRAFTSMAN - VCP BO in DTFScript: CRAFTSMAN
Key highlights: 💡⚡
📈 VCP BO in DTF
📈 Volume spike seen during Breakout
📈 MACD Bounce
📈 RS Line making 52WH
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Craftsman Automation Ltd.
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What traders are saying
"CRAFTSMAN" Cup and handle continuation pattern formation"Craftsman automation limited" has formed Cup and handle continuation pattern.
Pattern base target plotted on chart.
Previous trend was up before pattern formation.
Tight closing seen before breakout which is good sign.
40 WEMA showing clear uptrend.
Disclaimer : Chart and information shared here is for pure education purpose and not given any buy or sell recommendation.
The Case of Craftsman Automation Ltd : BreakoutUnderstanding Uptrends and Breakouts: The Case of Craftsman Automation Ltd
🔹 The Nature of an Uptrend
An uptrend in stock markets is characterized by a sequence of higher highs (HH) and higher lows (HL).
Higher Highs (HH): Each rally surpasses the previous peak.
Higher Lows (HL): Each correction bottoms above the prior low.
This pattern reflects sustained buying interest and investor confidence. Craftsman Automation Ltd has been in a continuous uptrend since its listing, consistently respecting this principle.
🔹 Breakout from Consolidation
Stocks often enter consolidation phases where prices move sideways, digesting prior gains.
Consolidation is healthy—it allows fundamentals and valuations to catch up.
A breakout above a previous high (like the September 2024 peak) signals renewed momentum.
When a stock breaks out after 1–2 years of consolidation, it often attracts fresh institutional and retail participation, as the breakout confirms strength and long-term demand.
🔹 Why Higher High Breakouts Matter
1. Psychological Barrier: Previous highs act as resistance. Breaching them signals buyers’ dominance.
2. Volume Confirmation: Breakouts with strong volume indicate conviction.
3. Trend Continuation: A higher high after a long pause suggests the uptrend is resuming with vigor.
For Craftsman Automation Ltd, crossing the September 2024 high at ₹7,079 is a technical milestone, reinforcing its bullish trajectory.
🔹 Current Opportunity
1. The breakout suggests potential for trend continuation.
2. Traders and investors often view such moves as opportunities to ride the next leg of the rally.
3. However, entry should be disciplined—not chasing blindly but aligning with risk management.
🔹 Risk Management & Stop Loss Awareness
Even strong uptrends can face pullbacks. Risk management is crucial:
Stop Loss Placement:
1. Below the breakout level (₹7,079) or
2. Below the most recent higher low.
Position Sizing: Never allocate more than a defined percentage of capital to one trade.
Avoid Emotional Trading: Breakouts can sometimes fail (false breakouts). Always respect stop losses.
A disciplined approach ensures that even if the trade doesn’t work, losses remain controlled.
🔹 Key Takeaways
Craftsman Automation Ltd is in a structural uptrend with consistent HH-HL patterns.
The breakout above September 2024 highs marks a renewed bullish phase.
Such long-term breakouts often present strong opportunities, but risk management is non-negotiable.
Traders should use stop losses and prudent position sizing to safeguard capital.
A Technical Perspective on Craftsman Automation LtdCraftsman Automation Ltd is showing strong bullish momentum, trading above its previous resistance and forming a classic higher high–higher low pattern. This technical setup suggests a potential breakout to new highs in the coming weeks or months.
Craftsman Automation Ltd has been on a steady upward trajectory, recently trading around ₹7,175. This price action is not just a number—it reflects a deeper technical story unfolding on the charts. Let’s break it down using simple yet powerful technical principles.
🔁 The Power of Higher Highs and Higher Lows
One of the most reliable patterns in technical analysis is the higher high–higher low sequence. It’s a hallmark of a sustained uptrend. Here’s what it means:
Higher Highs: Each new peak is higher than the previous one, showing increasing buying interest.
Higher Lows: Each pullback ends at a level higher than the last, indicating that sellers are unable to push the price down significantly.
Craftsman Automation has been consistently respecting this structure on the weekly chart, which adds more weight to the trend’s strength. Weekly patterns are more reliable than daily ones because they filter out short-term noise.
🔓 Breaking Past Resistance
The stock has now moved above its September 2024 resistance, which was also the previous swing high. This breakout is significant because:
It confirms the continuation of the uptrend.
It signals that the market has absorbed selling pressure at that level.
It opens the door for price discovery—where the stock can explore new highs without historical resistance.
This is often when momentum traders and institutional investors step in, adding fuel to the rally.
📊 RSI: Gauging Momentum, Not Overcomplicating It
The Relative Strength Index (RSI) is a simple yet effective momentum indicator. Currently, RSI is above 50 and approaching 70. Here’s why that matters:
Above 50: Indicates bullish momentum.
Approaching 70: Suggests increasing strength, but not yet overbought.
When RSI crosses 70 during an uptrend, it often signals strong bullish continuation, not necessarily a reversal—especially when supported by price structure like higher highs and higher lows.
🧠 Why This Setup Matters
This isn’t just about indicators—it’s about confluence. The alignment of price structure (higher highs/lows), breakout above resistance, and strengthening momentum (RSI) creates a compelling technical case. Traders often look for such confluence to increase the probability of success.
🛠️ Risk Management Still Rules
Even in strong setups, risk management is key. Traders might consider:
Trailing stop-losses below recent higher lows.
Scaling in rather than going all-in at once.
Watching for volume confirmation to validate the breakout.
In summary, Craftsman Automation Ltd is technically positioned for a potential breakout to new highs, supported by a textbook uptrend structure and strengthening momentum. For traders and investors who follow price action and trend-based strategies, this could be a high-probability opportunity worth watching.
Craftsman Price ActionCraftsman Automation’s share price in August 2025 has been trading near ₹6,839, showing resilient performance and hitting close to the upper end of its 52-week range. The stock has surged over 24% in the past three months, demonstrating strong momentum thanks to improved sentiment and periodic bullish technical signals, such as recent moving average crossovers.
Financially, the company posted robust annual sales growth above 20% and consolidated net sales exceeding ₹1,700 crore, but short-term earnings growth has been mixed with some volatility in profit trajectory. Craftsman’s valuation remains notably high, with its price-to-earnings ratio elevated above 77, reflecting investor expectations for strong future growth. This optimism is underpinned by industry forecasts projecting EPS growth over the next few years at a rate higher than the sector average.
Promoter holding at nearly 49% reflects management commitment, and steady interest and employee expenses indicate stable operations. Technically, bullish signals on moving averages have led to short-term price gains, while bearish signals on other indicators may cause small dips from time to time. Overall, Craftman Automation is seen as a premium growth play with strong operational results and solid long-term prospects, though investors should be mindful of valuation risks and short-term price swings.
CRAFTSMAN: Rising Wedge Breakout Post Q1 FY26NSE:CRAFTSMAN Breaks Above Rising Wedge: A Bullish Technical Play Worth Watching Post Decent Q1 FY26 Results
Price Action Analysis:
Current Price Movement:
• Current Price: ₹6,863.50 (as of July 30, 2025)
• Day's Performance: +₹415.50 (+6.44%)
• Volume: 91.27K shares
• 52-Week Range: ₹3,700 - ₹7,121.25
Price Structure Analysis:
• Trend: Strong uptrend from March 2025 lows
• Higher Highs: Consistent formation since March 2025
• Higher Lows: Well-defined support levels during pullbacks
• Momentum: Acceleration post-breakout with gap-up opening
Volume Spread Analysis:
• Volume Patterns: Decreasing volume during the consolidation phase
• Breakout Volume: Significant surge indicating institutional participation
• Volume Profile: Above-average participation at key resistance levels
Key Price Levels:
• All-Time High: ₹7,121.25 (immediate target zone)
• Breakout Level: ₹6,500 (now acting as support)
• Previous Resistance: ₹6,200-6,300 (now support zone)
• Major Support: ₹5,800-6,000 (rising trendline confluence)
Base Formation:
• Primary Base: Extended consolidation between ₹4,800-6,500 from March to July 2025
• Duration: Approximately 4 months
• Depth: Shallow correction of 15-20% from previous highs
• Character: Healthy sideways movement with diminishing volatility
Key Support and Resistance Levels:
• Major Resistance: ₹7,121.25 (all-time high)
• Immediate Resistance: ₹6,900-7,000 zone
• Strong Support: ₹6,500 (breakout level)
• Major Support: ₹5,800-6,000 (rising wedge upper trendline)
• Critical Support: ₹5,200-5,300 (previous consolidation zone)
Technical Pattern:
Rising Wedge Breakout:
• Pattern: Bullish breakout from a rising wedge formation
• Formation Period: March 2025 to July 2025
• Breakout Level: ₹6,500 approximately
• Volume Confirmation: Strong volume spike on breakout day
Trade Setup:
Entry Strategy:
• Primary Entry: ₹6,850-6,900 (current levels on any minor dip)
• Aggressive Entry: ₹6,800-6,850 (immediate entry)
• Conservative Entry: ₹6,650-6,700 (on pullback to breakout level)
Target Levels:
• Target 1: ₹7,200-7,300 (immediate resistance zone)
• Target 2: ₹7,800-8,000 (measured move target)
• Target 3: ₹8,500-9,000 (cup and handle projection)
Stop-Loss Levels:
• Aggressive Stop: ₹6,400 (below breakout level)
• Conservative Stop: ₹6,200 (below rising wedge support)
• Trailing Stop: Move to breakeven once Target 1 is achieved
Position Sizing:
• Risk per trade: Maximum 2% of portfolio
• Position size calculation based on stop-loss distance
• For ₹6,850 entry with ₹6,400 stop: Risk = ₹450 per share
• Recommended allocation: 1-2% of equity portfolio
Risk Management:
Risk Factors:
• Market-wide correction could drag the stock down
• Sector rotation out of engineering/auto components
• Profit booking at all-time high levels
• Global economic headwinds affecting the auto sector
Risk Mitigation:
• Strict stop-loss adherence
• Partial profit booking at each target level
• Position size limiting to manage portfolio risk
• Monitoring broader market sentiment
Exit Strategy:
• Book 30% profits at Target 1
• Book another 40% at Target 2
• Trail remaining 30% with rising stop-loss
Sectoral and Fundamental Backdrop:
Business Overview:
• Diversified engineering company with vertically integrated manufacturing
• Three main segments: Automotive Powertrain (51%), Aluminium Products (21%), Industrial & Engineering (28%)
• Market capitalization: ₹16,357 crores
• Revenue: ₹6,323 crores with profit of ₹211 crores (TTM)
Recent Financial Performance(Q1 FY26):
• Q1 FY26 results: Revenue of ₹1,784 crores, profit of ₹70 crores
• PAT growth: 31% YoY in Q1 FY26
• Segment performance: Aluminium Products revenue up 102.82% YoY
• Powertrain revenue: ₹496.41 crores (up 19.23% YoY)
Sector Dynamics:
• Automotive sector recovery post-pandemic
• Increasing adoption of aluminium components for weight reduction
• Growing demand for powertrain components in commercial vehicles
• Beneficiary of the Make in India initiative
Key Clients and Market Position:
• Supplies to tier 1 OEMs including Tata Motors, Cummins, M&M, Royal Enfield
• Strong presence in commercial vehicles, two-wheelers, and tractor segments
• Established player in aluminium die-casting and machining
Growth Drivers:
• Capacity utilization improvements
• Focus on higher-margin aluminium products
• Expansion in industrial and engineering segments
• Increasing content per vehicle trends
Analyst Outlook after Q1 FY26:
• Average 1-year price target: ₹5,754 (though this appears conservative given current price)
• Price target range: ₹4,318 to ₹8,085
• Positive sentiment on aluminium business growth
• Capex guidance of ₹100-120 crores annually for maintenance and debottlenecking
My Take:
The technical setup for NSE:CRAFTSMAN presents a compelling bullish case with the successful breakout from a rising wedge pattern, supported by strong volume and a healthy fundamental backdrop. The stock is well-positioned to test new highs, though traders should remain disciplined with risk management given the proximity to all-time high levels. The diversified business model and strong sectoral tailwinds provide fundamental support to the technical breakout.
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Disclaimer: "I am not a SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER."
This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
Craftsman Automation - Cup and handle breakout Craftsman Automation - Cup and handle breakout
Fundamentals
MCAP- 14000 Cr
PE - 48.7 > Industry PE of 36.91
PEG Ratio is 1.9
Debt to Equity is 1.06 and ICR is 5.19
ROE is 20%, ROCE is 20% ( 5yr ROCE is 17%)
Sales growth is 29%, 5yr Sales growth is 19%
Profit Growth is 6%, 5yr Profit growth is 25%
Promoter holding is 48% , down 6% in last quarter
FII AND DII Holding has gone up.
Latest results - Revenue beat, but earnings was negative surprise
Technicals
CMP - 5785
Bullish - Above EMA 9, 21,63, 200 on daily charts , RSI(14) is 70
Commentary
As seen in the charts , the stock has been trading in the parallel channel since its IPO in 2021.
It has also formed a cup and handle formation from Dec 2023 to till date.
The cup low is ~4000 and cup high is 5500.
As of today, 8/23, the stock has breached out of the cup and handle formation and touched 5800 levels.
Target :
T1 : As per the channel, the stock should march higher and reach channel highs around 6000-6200 by end of this year 2024
T2 : As per cup and handle , 7000 buy mid to late 2025
Disclosure 1 - Invested
Disclosure 2 - Not SEBI Registered
Disclosure 3 - This is Not investment advice. Treat it as educational
Charting the Climb – CRAFTSMAN on Track for a Trendline TakeoffHello traders! Hope you're all doing great.
I'm closely watching Craftsman Automation Ltd ( NSE:CRAFTSMAN ) on the 3-hour chart, where a strong technical confluence is shaping up — combining channel support, Fibonacci retracement, and a bullish bounce.
Recent Technical Highlights:
1. The stock has respected a well-formed ascending channel, with clean reactions to both upper and lower trendlines.
2. After a pullback from the recent high of ₹5,842, the price retraced to the 50% Fibonacci level (₹5,108.50) drawn from the swing low at ₹4,419.90 to the swing high at ₹5,842.30.
3. This level also aligns with the lower channel support and horizontal demand zone (Around ₹5150 - ₹5,250) — forming a triple confluence support.
4. The stock has now bounced from this zone and looks ready for a possible move back toward the channel high.
Setup Summary:
Entry Zone: ₹5,450 (Around current levels)
Stop Loss: Below ₹5,057 (closing basis)
Target: ₹6,278+ (channel top projection)
Disclaimer:
This is a personal analysis and not financial advice. Please do your own research and trade responsibly. Risk management is key.
Thanks for reading!
Let me know your thoughts or if you're tracking this setup too.
Best regards,
Anantesh
CRAFTSMAN
In March 2025, the Weekly MACD crossed above its Trigger line.
Subsequently, price negated its lower top lower bottom formation, confirming bullishness.
If the price is to follow its past behavior, we could a resumption of long term up-move to test 10500.
Bullish outlook would remain valid as long as price is above 4500.
CRAFTSMAN Price action analysisCraftsman Automation Ltd (CRAFTSMAN) has shown significant price action in recent months. As of February 27, 2025, the stock is trading at 4,733.25 INR, down 2.43% from its previous close of 4,850.95 INR
## Technical Analysis
The stock is currently displaying bearish signals across multiple technical indicators:
- **Super Trend**: Mild bearish with a value of 4416.49
- **Parabolic SAR**: Strong bearish trend, indicating a nicely trending downward movement
- **MACD**: Bearish crossover, with the MACD line sustaining below the signal line
- **Bollinger Bands**: Strong bearish signal with a negative breakout
- **ADX**: Trending downwards, suggesting a bearish momentum
## Recent Performance
CRAFTSMAN has shown mixed performance across different time frames:
- **1-week change**: Up 1.34%
- **1-month change**: Down 12.21%
- **Year-to-date**: Performance data not available in the search results
## Historical Pattern
Between December 2023 and August 2024, CRAFTSMAN formed a cup and handle pattern on the daily chart. The stock broke out of this pattern on August 26, 2024, with significant trading volume.
## Valuation
Despite the recent bearish technical signals, some analysts consider CRAFTSMAN to be undervalued:
- Current market price: 4,059.40 INR
- Intrinsic value (average of DCF and relative values): 5,527.45 INR
- Undervaluation: 27%
## Analyst Projections
Wall Street analysts have set the following price targets for CRAFTSMAN:
- Average 1-year price target: 5,256.91 INR
- Low forecast: 4,317.75 INR
- High forecast: 6,090.00 INR
Investors should note that while technical indicators currently suggest a bearish trend, the stock's valuation and analyst projections indicate potential upside. As always, it's crucial to conduct thorough research and consult with a financial advisor before making investment decisions.
Craftsman Automation cmp 4860 by Weekly Chart viewCraftsman Automation cmp 4860 by Weekly Chart view
- Support Zone 3775 to 4150 Price Band
- Resistance Zone 5065 to 5465 Price Band
- Rising Price Channel Breakdown after ATH 7121.25
- Falling Resistance Price Channel Breakout attempted
- Volumes needed close in with avg traded qty for upside price momentum
Craftsman Automation cmp 4887.90 Weekly Chart view since listed Craftsman Automation cmp 4887.90 by the Weekly Chart view since stock listed
- Support Zone 3785 to 3925 Price Band
- Bullish Triple Bottom is also seen active
- Resistance Zone seen at 5400 to 5525 Price Band
- Falling Resistance Trendline Breakout seems it is still been sustained
- Rising Support Trendline since close to listing seems working up and respected
Craftsman Automation: Poised for a Strong Rebound?Craftsman Automation Ltd. is a leading engineering company with vertically integrated manufacturing capabilities. It operates in three key segments:
Automotive – Powertrain and Others (51% revenue share): Manufactures engine crankcases, cylinder heads, camshafts, transmission housings, and axle components for major OEMs.
Automotive – Aluminium Products (25% revenue share): Supplies aluminum die-casting products to two-wheelers and medium & heavy commercial vehicle manufacturers.
Industrial & Engineering (24% revenue share) : Produces warehouse storage solutions, automated racking systems, and precision engineering products.
Fundamental Analysis
Financial Performance
Revenue: ₹5,046.57 crore (YoY growth: 39.88%)
Net Profit: ₹190.14 crore (+22.58% YoY)
Earnings Per Share (EPS): ₹84.55 (+22.39% YoY)
Profitability Ratios
ROCE: 10.50%
ROE: 9.14%
Valuation Metrics
P/E Ratio: 50.9 (Higher than industry avg. of 39.5)
P/B Ratio: 4.30
Dividend Yield
0.28% (Low yield, growth-oriented stock)
Growth Outlook
Earnings Growth Forecast: 41.67% per year
Risk Factors
Interest Coverage: Low, earnings do not sufficiently cover interest payments.
Profit Margins: Declined from 7.4% to 3.8% in the past year.
Technical Analysis
Price Movement & Chart Pattern
52-Week High: ₹7,121.25 (Sep 25, 2024)
Correction: -45.74%
Recent Low: ₹3,864 (Feb 14, 2025)
Pattern Formation: Falling Wedge
Breakout Date: March 5, 2025
Volume Surge on Breakout: 277.93K (vs 30-day avg. 90.32K)
Reversal Zone
Key Buy Zone: ₹4,165 - ₹4,380
Bullish Momentum Expected if price stabilizes within this support range.
Resistance Levels
R1: ₹5,900
R2: ₹6,370
R3: ₹7,670
R4: ₹8,800
Conclusion
Craftsman Automation is fundamentally strong with robust revenue growth and promising future earnings potential. However, valuation remains high. Technically, the breakout from the falling wedge with significant volume indicates a potential bullish reversal. If the stock retraces to the ₹4,165 - ₹4,380 support zone, it may provide a good buying opportunity. Watch for resistance at ₹5,900, ₹6,370, ₹7,670, and ₹8,800 for profit booking levels.
Keep eye on it.As we discussed in our previous posts. we showing power of RSI.
When RSI close above 60 in previous month it can go up by minimum 20% in a short term.
Today's stock is CRAFTSMAN.
Note: this is not a buy or sell recommendation of any stocks or crypto or forex. This is for educational purpose only.
CRAFTSMAN - Cup and Handle breakoutCRAFTSMAN - Cup and Handle breakout
Disclaimer:-
This is only for educational purposes. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index, or any other financial instrument at any time.
CRAFTSMAN AUTOMATION READY TO CRAFT SOME QUICK RETURNSThe stock has been forming an cup and handle pattern on the daily timeframe , it faced severe drawbacks many times but the stock stayed resilient and made a quick comeback
the company is the Largest player in machining of cylinder blocks and cylinder heads in the intermediate, M&HCV segment as well as in the construction equipment category
Manufacturing Facilities - Co. has 12 manufacturing facilities located at Coimbatore, Chennai, Bangalore, Pune, Indore, Faridabad, and Jamshedpur with a total built-up area of 1.6+ Million Sq.ft.
Client Concentration (FY23)
Top 10 customers contributed 58% of revenue.
Geographical Split (FY23)
Domestic: 92% & International: 8%
Automotive segment Revenue Mix - Industry-wise - FY23
CV - 55%
Off-Highway - 20%
Tractors - 15%
SUV - 10%
Capex
Co. did a capex of 309 Crs in FY23 to enhance
technological upgradation and regular maintenance work.
Co. incurred capex of Rs.1200 crore between fiscals 2017-20
The fundamentals of the stock are also quite promising as indicated in the chart the FIIs and DIIs holding have increased over the period of three years also profitability seems very extraordinary
The Secular trend also looks quite optimistic and the targets are
6551 - TARGET 1( 3-4 WEEKS)
7085 - TARGET 2(10-12 WEEKS)
STOPLOSS- 5439






















