CEATLTD - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 4.2

📈 CEATLTD is currently in a strong uptrend, supported by bullish momentum indicators and price action above key moving averages.

📊 Technical Overview

• Trend Status: Trending upward — price has surged from ₹2,322 to ₹4,022, nearing its 52-week high.
• Moving Averages: Price is above both 50 DMA (₹3,650) and 200 DMA (₹3,355), confirming bullish sentiment.
• RSI (61.8): Indicates strong momentum, though approaching overbought territory.
• MACD (180): Strong positive crossover supports continued bullish momentum.
• Bollinger Bands: Price near upper band, suggesting strength but also potential short-term pullback.
• Volume: Slightly below average (2.88L vs 2.99L), but still healthy for trend continuation.

📌 Entry & Exit Zones

• Support Zone: ₹3,650–₹3,800 — ideal for entry on pullbacks.
• Resistance Zone: ₹4,400–₹4,438 — potential exit or profit booking zone.
• Breakout Level: ₹4,438 — crossing this could lead to new highs.

✅ Positive

• Strong quarterly profit growth (48.1%) and EPS of ₹132.
• PEG ratio of 0.30 suggests undervaluation relative to growth.
• Price action above key moving averages with bullish technical indicators.

⚠️ Limitation

• RSI nearing overbought zone — short-term caution advised.
• Volume slightly below average, indicating mild hesitation.
• Moderate debt-to-equity ratio (0.69) compared to peers.

📰 Company Negative News

• Decline in FII holdings (-1.18%) may reflect cautious foreign sentiment.

🌟 Company Positive News

• Strong quarterly performance with PAT rising from ₹138 Cr to ₹202 Cr.
• Positive DII holding change (+0.98%) shows domestic institutional confidence.

🏭 Industry

• Tyre manufacturing sector is cyclical and sensitive to raw material costs and auto demand.
• Industry P/E (31.5) slightly above stock’s P/E (28.9), suggesting reasonable valuation.

🧾 Conclusion

• CEATLTD is technically strong with bullish indicators and solid fundamentals.
• Ideal entry on pullbacks near ₹3,650–₹3,800; watch for breakout above ₹4,438.
• Long-term investors may benefit from growth and valuation; short-term traders should monitor RSI and volume.