CEATLTD - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.8

📊 Chart Patterns: CEATLTD is trading above both its 50 DMA (3,810 ₹) and 200 DMA (3,506 ₹), indicating medium-term bullish strength. Current price (3,928 ₹) is consolidating near support zones after a strong rally.

📈 Moving Averages: Price > 50 DMA > 200 DMA → bullish alignment. However, momentum has slowed as price approaches resistance levels.

📉 RSI: At 42.3, RSI is neutral-to-weak, suggesting limited buying strength and possible sideways consolidation.

📉 MACD: Negative (-38.3), showing bearish crossover and short-term weakness despite long-term bullish structure.

📊 Bollinger Bands: Price is near the middle band, indicating consolidation. No breakout signals yet.

📊 Volume Trends: Current volume (62,887) is slightly below 1-week average (69,215), showing reduced participation and lack of strong momentum.

📍 Support & Resistance:

- Strong support: 3,810 ₹ (50 DMA)

- Major support: 3,500 ₹ (200 DMA)

- Immediate resistance: 4,050–4,100 ₹

- Major resistance: 4,438 ₹ (52-week high)

🚦 Momentum Signals: Short-term momentum is weak. Entry zone: 3,800–3,850 ₹ near support. Exit zone: 4,050–4,100 ₹ if resistance is tested. Breakout above 4,438 ₹ could trigger fresh rally.

🔄 Trend Status: The stock is consolidating after a strong uptrend, showing signs of pause before potential continuation.

Positive

• Strong EPS (132 ₹) and healthy profitability.
• Quarterly PAT growth (+48.1%) indicates improving earnings momentum.
• PEG ratio of 0.29 suggests undervaluation relative to growth prospects.
• Stock trading above both 50 DMA and 200 DMA, showing long-term bullish strength.

Limitation

• MACD negative, indicating short-term weakness.
• RSI at 42.3 shows limited buying strength.
• Debt-to-equity ratio of 0.69 is relatively high compared to peers.

Company Negative News

• FII holdings declined (-1.18%), showing reduced foreign investor confidence.
• MACD bearish crossover suggests near-term weakness.

Company Positive News

• DII holdings increased (+0.98%), showing strong domestic institutional support.
• Quarterly PAT surged to 202 Cr. from 138 Cr., reflecting strong operational performance.

Industry

• Industry PE at 31.0 is slightly higher than CEATLTD’s PE (28.1), showing relative valuation comfort.
• Tire industry benefits from automotive demand recovery, though cyclical in nature.

Conclusion

⚖️ CEATLTD is consolidating after a strong rally, trading above key moving averages but showing short-term weakness in momentum indicators. Entry near 3,800–3,850 ₹ could be considered for short-term gains, with exit around 4,050–4,100 ₹. A breakout above 4,438 ₹ would confirm continuation of the uptrend. Strong fundamentals and earnings growth support long-term bullish outlook despite near-term consolidation.