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.