Ceat share price surpassed its previous record for the first time since January 2018 and hit fresh high of Rs 2,185 last week. The stock has registered 35.28 percent returns in the current month so far and still has the potential to give 9 percent more returns in the coming days.
The stock has reported highest monthly gains since last July and has formed a robust bullish candlestick pattern on the monthly charts, with consistently making higher highs, higher lows for the second consecutive month with strong volumes, which is a positive sign. In last three months, it surged over 45 percent.
On the weekly scale, too, Ceat has formed a robust bullish candlestick pattern with making higher tops, higher bottoms for fifth straight week, with above average as well as strong volumes.
The rally in May was seen after witnessing consolidation for previous two months.
"The stock made a fresh life time high at Rs 2,185 in last week and sustained near that level indicating strong positive undertone of the stock," Vidnyan Sawant, AVP - Technical Research at GEPL Capital said.
He further said on the weekly chart, the stock gave a breakout of the Saucer pattern with volume confirmation, while on the lower time frame like daily, the stock maintained bullish formation of higher top higher bottom.
The momentum indicator RSI also sustained above 60 mark on all the time frames which shows strong positive momentum.
Hence, he feels the immediate resistance for stock would be Rs 2,300 followed by Rs 2,455 levels, whereas important support is placed at Rs 2,000 and Rs 1,870 levels.
One can buy the stock with strict stop-loss of Rs 2,000 for the upside potentials of Rs 2,300 & Rs 2,455 levels, Vidnyan advised.
Gaurav Bissa, Vice President - Equity Advisory at InCred Equities also feels RSI (relative strength index) on the monthly charts is currently trading at 67 levels and once it crosses Rs 70, a strong push can be seen in the stock towards Rs 2,300 levels.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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