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CEATLTD - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 4.0

Stock Code CEATLTD Market Cap 15,118 Cr. Current Price 3,737 ₹ High / Low 4,438 ₹
Stock P/E 21.5 Book Value 1,119 ₹ Dividend Yield 0.83 % ROCE 15.8 %
ROE 12.2 % Face Value 10.0 ₹ DMA 50 3,780 ₹ DMA 200 3,576 ₹
Chg in FII Hold 0.71 % Chg in DII Hold -0.57 % PAT Qtr 235 Cr. PAT Prev Qtr 202 Cr.
RSI 48.0 MACD -32.8 Volume 54,298 Avg Vol 1Wk 80,850
Low price 2,322 ₹ High price 4,438 ₹ PEG Ratio 0.22 Debt to equity 0.69
52w Index 66.9 % Qtr Profit Var 145 % EPS 156 ₹ Industry PE 28.3

📊 Technical Analysis

  • Chart Patterns: CEATLTD has corrected from its 52-week high of 4,438 ₹ and is consolidating near 3,737 ₹.
  • Moving Averages: Price (3,737 ₹) is slightly below 50 DMA (3,780 ₹) but above 200 DMA (3,576 ₹), showing medium-term strength but short-term weakness.
  • RSI: At 48.0, neutral zone — neither overbought nor oversold.
  • MACD: Negative (-32.8), indicating short-term bearish momentum.
  • Bollinger Bands: Price near mid-band, suggesting consolidation with limited volatility.
  • Volume Trends: Current volume (54,298) below 1-week average (80,850), showing weak participation.

📈 Momentum & Signals

  • Short-term Momentum: Weak due to negative MACD and low volume.
  • Support Levels: 3,700 ₹ (near-term), 3,576 ₹ (200 DMA).
  • Resistance Levels: 3,800 ₹ (50 DMA), 4,000 ₹ (psychological resistance).
  • Optimal Entry Zone: 3,650–3,720 ₹ (close to support).
  • Optimal Exit Zone: 3,850–4,000 ₹ (near resistance).
  • Trend Status: Consolidating with mild bearish bias.

✅ Positive

  • Strong EPS (156 ₹) and attractive PEG ratio (0.22) indicate undervaluation relative to growth.
  • Quarterly PAT growth (235 Cr vs 202 Cr) shows improving profitability.
  • FII holdings increased (+0.71%), reflecting foreign investor confidence.

⚠️ Limitation

  • Stock P/E (21.5) is below industry PE (28.3), but valuation remains moderately high.
  • ROE (12.2%) is modest compared to peers.
  • Weak short-term momentum due to negative MACD and low trading volume.

📉 Company Negative News

  • DII holdings decreased (-0.57%), showing reduced domestic institutional confidence.
  • Stock trading below 50 DMA, signaling short-term weakness.

📈 Company Positive News

  • Quarterly profit variation of 145% highlights strong growth momentum.
  • Improved PAT performance supports earnings visibility.

🏭 Industry

  • Tyre and automotive sector supported by rising demand and infrastructure growth.
  • Industry PE at 28.3 vs stock PE at 21.5 — stock trades at discount valuation.

🔎 Conclusion

  • CEATLTD is consolidating with short-term bearish signals but strong medium-term fundamentals.
  • Best entry near 3,650–3,720 ₹, exit near 3,850–4,000 ₹ unless breakout above 4,000 ₹ occurs.
  • Medium-term outlook positive due to strong earnings growth and valuation discount, though short-term momentum remains weak.

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