CEATLTD - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📊 Analysis Summary

CEATLTD presents a mixed but slightly favorable setup for swing trading, with technical weakness but strong valuation metrics and improving institutional interest.

🔍 Technical Indicators

RSI (34.7): Near oversold zone, suggesting potential for a bounce.

MACD (-80.9): Strong bearish momentum, but may be bottoming out.

Price vs DMA

Current Price (₹3,353) is below 50 DMA (₹3,588) but above 200 DMA (₹3,222) — indicating medium-term support.

Volume: Significantly below average, showing lack of momentum currently.

📈 Fundamental Snapshot

P/E (29.6) vs Industry PE (33.9): Slightly undervalued.

PEG Ratio (0.37): Very attractive — implies strong growth at a reasonable price.

ROCE (15.0%) & ROE (11.7%): Solid returns.

EPS (₹107) vs Price (₹3,353): Reasonable valuation.

FII Holding ↑ (2.11%): Positive institutional sentiment.

Debt to Equity (0.49): Manageable leverage.

Qtr Profit Decline (-22.8%): A concern, but not catastrophic.

✅ Entry Strategy (If Not Holding)

Wait for RSI to cross 40 and MACD to flatten or turn positive.

Optimal Entry Price: ₹3,250–₹3,300 range, near 200 DMA support.

Look for volume pickup and bullish reversal candles before entering.

🚪 Exit Strategy (If Already Holding)

Exit near 50 DMA (₹3,588) or if price fails to hold ₹3,250.

Consider trailing stop-loss at ₹3,200 to protect capital.

⚖️ Final Verdict

CEATLTD is a moderately good candidate for swing trading, especially if technical indicators begin to reverse. Strong fundamentals and institutional buying support the case, but weak momentum suggests caution.

Would you like a chart-based entry confirmation or a list of similar auto component stocks with better technical setups?

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