CEATLTD - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.7
| Stock Code | CEATLTD | Market Cap | 13,324 Cr. | Current Price | 3,295 ₹ | High / Low | 4,438 ₹ |
| Stock P/E | 15.4 | Book Value | 1,253 ₹ | Dividend Yield | 0.91 % | ROCE | 20.6 % |
| ROE | 18.5 % | Face Value | 10.0 ₹ | DMA 50 | 3,421 ₹ | DMA 200 | 3,536 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.42 % | PAT Qtr | 291 Cr. | PAT Prev Qtr | 235 Cr. |
| RSI | 47.4 | MACD | -62.8 | Volume | 1,18,511 | Avg Vol 1Wk | 1,29,273 |
| Low price | 3,000 ₹ | High price | 4,438 ₹ | PEG Ratio | 0.28 | Debt to equity | 0.64 |
| 52w Index | 20.5 % | Qtr Profit Var | 127 % | EPS | 201 ₹ | Industry PE | 21.8 |
📊 Chart Patterns & Trend: CEATLTD is consolidating after a decline from its 4,438 ₹ high. Current price (3,295 ₹) is below both 50 DMA (3,421 ₹) and 200 DMA (3,536 ₹), reflecting short-term weakness. Support lies near 3,200–3,250 ₹, with resistance at 3,400–3,450 ₹. Trendlines suggest sideways consolidation with bearish undertone.
📈 Moving Averages: Price is trading below both 50 DMA and 200 DMA, indicating short-term weakness and long-term caution.
📉 RSI: At 47.4, RSI is neutral to mildly bearish, showing limited buying strength.
📉 MACD: Negative (-62.8), confirming bearish momentum.
📊 Bollinger Bands: Price is near the lower band, suggesting potential support but weak momentum.
📊 Volume Trends: Current volume (1,18,511) is below the 1-week average (1,29,273), showing reduced participation and lack of breakout strength.
💡 Momentum Signals: Short-term bearish bias with consolidation. A breakout above 3,400 ₹ could trigger upside toward 3,600 ₹, while breakdown below 3,200 ₹ risks further decline.
🎯 Entry Zone: 3,200–3,250 ₹ (support region).
🎯 Exit Zone: 3,400–3,450 ₹ (resistance region; extended target 3,600 ₹).
📌 Status: Consolidating with bearish bias.
Positive
✔ EPS of 201 ₹ supports valuation strength.
✔ Strong ROCE (20.6%) and ROE (18.5%).
✔ PEG ratio of 0.28 indicates undervaluation relative to growth.
✔ Quarterly PAT growth (291 Cr. vs 235 Cr.) shows strong earnings momentum.
Limitation
⚠ Price trading below both 50 DMA and 200 DMA.
⚠ Negative MACD (-62.8) confirms bearish momentum.
⚠ Volume below average, limiting breakout potential.
⚠ FII holdings decreased (-0.37%), showing reduced foreign investor confidence.
Company Negative News
⚠ No major negative news reported, but weak technical momentum and reduced FII holdings are concerns.
Company Positive News
✔ Quarterly PAT improved significantly (+127% variance).
✔ DII holdings increased (+0.42%), reflecting domestic institutional support.
✔ Dividend yield of 0.91% adds investor appeal.
Industry
🏭 Automobile and tyre sector supported by demand recovery and infrastructure growth.
📈 Industry PE (21.8) higher than CEATLTD’s PE (15.4), suggesting undervaluation.
Conclusion
📌 CEATLTD is consolidating below key moving averages with weak short-term momentum. Entry near 3,200–3,250 ₹ offers favorable risk-reward, while exits near 3,400–3,450 ₹ are prudent unless momentum strengthens for a breakout toward 3,600 ₹. Long-term investors benefit from growth momentum, but traders should monitor DMA resistance and volume trends closely.
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