CEAT shares hit fresh 52-week high! Multibagger stock up 116% in a year. Time to book profit?
CEAT share price: The counter's 14-day relative strength index (RSI) came at 51.94. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 47.24.
- Jul 10, 2023,
- Updated Jul 10, 2023 3:09 PM IST
Shares of CEAT resumed their strong upmove in Monday's trade after a single-session halt. The stock has jumped 9.59 per cent to hit a fresh 52-week high of Rs 2,640 over its previous close of Rs 2,408.90. It was last seen trading 5.40 per cent higher at Rs 2,539 today. At this price, the multibagger stock has gained 116.02 per cent in the past one year. It has surged 22.59 per cent in last five days.
On the technical front, the counter's 14-day relative strength index (RSI) came at 51.94. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 47.24. It has a price-to-book (P/B) value of 2.91. The scrip has a one-year beta of 0.47, indicating low volatility.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Though CEAT might be looking lucrative due to recent up moves in the counter. One need to see that it is trading way above all major exponential averages. So, mean reversion could be possible if it gets rejected from top due to bearish divergence. One can book profit in the zone of Rs 2,550-2,600 levels. As of now no fresh longs are recommended."
AR Ramachandran from Tips2trades said, "CEAT is bullish but also overbought on the daily charts with next resistance at Rs 2,710. Investors should book profits at current levels or hold till daily support of Rs 2,393 is broken on a closing basis."
On the other hand, Vaibhav Kaushik, Research Analyst at GCL Broking, said that the stock is in a bull run and it may touch Rs 3,000. "After a strong breakout above Rs 2,100, CEAT is in a bull run for a target of Rs 3,000. Keep stop loss placed at Rs 2,250. A pick up in the auto sector, lower raw material cost and demand seen in replacement would be the key reasons behind the stock's suggested upward move," he stated.
Premium vehicle launches had a positive rub-off effect on tyre stocks, an industry source requesting anonymity said.
Around 1.06 lakh shares changed hands on BSE today, which was higher than the two-week average volume of 44,000 shares. Turnover on the counter stood at Rs 27.08 crore, commanding a market capitalisation (m-cap) of Rs 10,364.93 crore.
Meanwhile, Indian equity benchmarks traded higher in today's early deals, led by gains in energy and metal stocks.
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Shares of CEAT resumed their strong upmove in Monday's trade after a single-session halt. The stock has jumped 9.59 per cent to hit a fresh 52-week high of Rs 2,640 over its previous close of Rs 2,408.90. It was last seen trading 5.40 per cent higher at Rs 2,539 today. At this price, the multibagger stock has gained 116.02 per cent in the past one year. It has surged 22.59 per cent in last five days.
On the technical front, the counter's 14-day relative strength index (RSI) came at 51.94. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 47.24. It has a price-to-book (P/B) value of 2.91. The scrip has a one-year beta of 0.47, indicating low volatility.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Though CEAT might be looking lucrative due to recent up moves in the counter. One need to see that it is trading way above all major exponential averages. So, mean reversion could be possible if it gets rejected from top due to bearish divergence. One can book profit in the zone of Rs 2,550-2,600 levels. As of now no fresh longs are recommended."
AR Ramachandran from Tips2trades said, "CEAT is bullish but also overbought on the daily charts with next resistance at Rs 2,710. Investors should book profits at current levels or hold till daily support of Rs 2,393 is broken on a closing basis."
On the other hand, Vaibhav Kaushik, Research Analyst at GCL Broking, said that the stock is in a bull run and it may touch Rs 3,000. "After a strong breakout above Rs 2,100, CEAT is in a bull run for a target of Rs 3,000. Keep stop loss placed at Rs 2,250. A pick up in the auto sector, lower raw material cost and demand seen in replacement would be the key reasons behind the stock's suggested upward move," he stated.
Premium vehicle launches had a positive rub-off effect on tyre stocks, an industry source requesting anonymity said.
Around 1.06 lakh shares changed hands on BSE today, which was higher than the two-week average volume of 44,000 shares. Turnover on the counter stood at Rs 27.08 crore, commanding a market capitalisation (m-cap) of Rs 10,364.93 crore.
Meanwhile, Indian equity benchmarks traded higher in today's early deals, led by gains in energy and metal stocks.
Also read: PNB shares at Rs 80? PSU bank may clock up to 470% rise in Q1 profit
Also read: SBI, Maruti Suzuki: 2 Nifty cos may log 100% jump in Q1 profit; share price targets & more