CRISIL, Icra, CARE: Major hurdles yet to be conquered by rating agencies

Despite the 15 per cent rally on Wednesday, CARE Ratings still trades 38 per cent lower from its 52-week high; Similarly, CRISIL and ICRA too are down 14 per cent from their respective 52-week highs.

Shares of rating agencies saw considerable action in trades on Wednesday. CARE Ratings zoomed 15 per cent, with volumes equivalent to Covid-19 reversal point seen in March 2020.

India's one of the top credit rating agency, however, was still down 38 per cent from its 52-week high, recorded in October 2021.

ICRA also surged 4.6 per cent in trades yesterday, while the subsidiary of S&P Global Crisil ended on a flat note. Both these stocks quote 14 per cent lower when compared with their respective 52-week highs.

Here’s the outlook of rating agencies for the upcoming sessions:-

CARE Ratings Ltd (CARE)

Outlook: Double bottom breakout could trigger a 16 per cent jump

With a robust up move on Wednesday, the shares of CARE Rating points to a “Double Bottom” formation. As and when the stock manages to cross Rs 500 mark, the breakout rally could lead to Rs 580 level, shows the daily chart. The Moving Average Convergence Divergence (MACD) is inching towards the zero line, if succeeds to leap over then the momentum could see added bullishness. The support for the stock exists at Rs 430 level.  CLICK HERE FOR THE CHART

CRISIL Ltd (CRISIL)

Outlook: Needs to conquer 50-DMA

Shares of CRISIL trade over the 200-day moving average (DMA) and 100-DMA, and to breakout on the upside, it is necessary to conquer the 50-DMA hurdle, shows the daily chart. The 50-DMA is located at Rs 3,380, while 200-DMA and 100-DMA, act as supports placed at Rs 2,937 and Rs 3,143 respectively. Breakout above 50-DMA might see a rally in the direction of Rs 3,700 level. CLICK HERE FOR THE CHART

ICRA Ltd (ICRA)

Outlook: Breakout above 100-DMA

ICRA shares have held the 200-DMA support firmly, shows the daily chart. It did violate, but failed to provide a conclusive breakdown. Thus, a move over the Rs 3,927 level, which is the 100-DMA obstacle, may trigger a fresh rally. The next hurdle is placed at Rs 4,300 mark. The Relative Strength Index (RSI), a momentum indicator has jumped above the oversold territory, hence suggests a positive bias. CLICK HERE FOR THE CHART