Ceat may test Rs 1130, buy Arvind on dips: Rajat Bose

Rajat Bose of rajatkbose.com told CNBC-TV18, "Yesterday, Ceat showed a lot of momentum and the formation is pretty promising. Yesterday it rallied by about 20 points and again 30-40 points rally on the upside is pretty much likely. So, I would put a stop loss 20 points down the road at Rs 1,058 and would put a target at Rs 1,130. Rs 1,125 to about Rs 1,130 is a supply zone. So I have kept a target there and Ceat is definitely quite promising." "For Arvind at least a test of the 200-day moving average at Rs 287 looks pretty much likely. If you call it a pullback rally, at least a pullback to the 200-day moving average might happen; Rs 284 is my first target and Rs 287 is my second target and I have kept a stop loss at Rs 272.90. I am actually looking forward to buying Arvind once it corrects itself a bit. For the day long side trade is definitely in the offing," he said. "Technically the chart of Tech Mahindra is quite promising. Yesterday, it crossed its 50-day moving average, this is the second attempt. Earlier it attempted but closed lower than that and today I am expecting it to actually consolidate its gains over the 50-day moving average. Probably it will hit the 89-day moving average on the upside and test target levels of around Rs 487 to about Rs 494. I would put a stop loss at Rs 460. Tech Mahindra is one lone spot perhaps which shows that you can still buy."