Is a bullish trend reversal in CRISIL shares afoot?

The stock has climbed over 4 per cent despite adverse conditions on D-Street.

The Indian benchmark indices are falling like ninepins on Wednesday as both Sensex, as well as Nifty, tumbled over 1.25 per cent each. A similar sort of fate is for the broader market indices as Nifty Midcap and Smallcap plunged 1.52 per cent & 1.38 per cent, respectively.  

Amidst all this chaos, there is one stock that is getting the limelight and its name is CRISIL Limited.

CRISIL is an analytical company. It is a provider of ratings, data and research, analytics & solutions. It operates through three segments - ratings, research, and advisory. 

The stock has climbed over 4 per cent despite adverse conditions on D-Street. It formed a bullish engulfing-like pattern and the relevance of this pattern amplifies that as it has been formed near the 100-DMA. More importantly, the 100-DMA is trending higher.  

Apart from the bullish formation on the daily chart, the stock has recorded robust volume. Volume for the day is highest in the last four trading sessions and greater than its 20-day average volume, highlighting larger participation in the direction of the trend.  

The stock had corrected a little over 20 per cent from the recent highs; however, during the recent correction, its volume remained mostly below the 20-day average, which clearly indicates that this was just a routine profit booking.  

Interestingly, despite correcting over 20 per cent from the highs, the stock did not enter into the oversold region on RSI. Recently, it has seen a crossover of a nine-period average thereby, supporting the positive bias. The stock on the way up has resistance placed around Rs 3,300 while on the downside, immediate support is placed at Rs 3,055.