CEAT shares jump over 50% in a year; can they revisit Rs 1,800 level in near term?

Shares of CEAT Ltd have surged 53.82 per cent in the past one year. The stock on Thursday rose 2.65 per cent to hit a day high of Rs 1,683.25, extending its gains for the second straight session. Although, the counter has climbed just 2.29 per cent on a year-to-date (YTD) basis. At today's high price of Rs 1,683.25, the scrip traded 16.28 per cent lower from its 52-week high of Rs 1,981.45, a level seen on December 2 last year. That said, it has gained 89.12 per cent from its one-year low of Rs 890, hit on June 20, 2022.

Four technical analysts suggested that the counter looked 'bullish'. Two of them hinted that it may touch Rs 1,800 in the near term, which is much below its one-year high of Rs 1,981.45.

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a decent erosion from the peak of Rs 2,000 level to bottom out near Rs 1,350 and has indicated a decent bounce back. Currently, RSI (Relative strength index) is on the rise and has the potential to carry on the momentum further in the coming days. We suggest buying and accumulating this stock for an upside target of Rs 1,800 keeping the stop loss near Rs 1,450 level."

Ravi Singhal, CEO at GCL Broking, said, "The stock can go up to Rs 1,800 in the coming quarter. Keep stop loss placed at Rs 1,600."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Recently, the said counter has seen a nice up move from Rs 1,400-1,580 levels. On a daily scale, DMI (Directional movement index) has given a massive bullish cross hinting towards further upside in the counter."

Ravi Singh, Vice-President and Head of Research at Share India, said, "On technical setup, the stock is bullish and trading above 50 & 200-DMA (Daily Moving Average) with an RSI of above 70."

On the other hand, one of the analysts said that support on the counter could be seen at Rs 1,511.

AR Ramachandran from Tips2trades said, "A daily close below the support of Rs 1,511 can be used to sell for lower targets of Rs 1,410-1,360 in the near term."

The stock was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day RSI came at 72.46. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 75.75. It has a price-to-book (P/B) value of 2.08.

Meanwhile, Indian equity benchmarks traded higher in afternoon deals, led by strong buying in financials and metal stocks.