Yes, but you probably don't want to do that. Someone who is a dependent can't claim a dependent, so if your daughter claims your granddaughter, then you can't claim your daughter as a dependent. You can claim both your daughter and granddaughter as dependents and your daughter (if she has income from working) would check the box for "someone else can claim me as a dependent."
If her income is just right, she might get more in earned income credit than you will lose by giving up both dependents, so you might want to test it both ways. But it will probably be to your advantage to claim both children on your tax return.
