Best Stock to Buy Today: CEAT Ltd
Best Stock to Buy Today
The shares of CEAT, a tire company, experienced a 2% decline due to profit booking. However, experts see a potential opportunity for bumper earnings and have set a target for the stock. Here’s the information:
CEAT shares reached their one-year low of Rs 890 on June 20, 2022, but in the following 11 months, they surged by 145% to reach a record high of Rs 2,181.60 on May 25, 2023.
Although CEAT shares have weakened by around two percent in today’s trading session, experts believe that it has the potential to climb up to approximately 19% from the current level. Despite a recent decline of over 5% from its record high, market experts suggest that this dip should be seen as an investment opportunity.
Currently, CEAT shares are trading at Rs 2066.45 on the BSE, reflecting a 1.99% fall, while the Sensex stands at 62,977.16 with a 0.76% gain.
Experts remain positive about CEAT due to several factors. The stock has formed a strong bullish candlestick pattern on the monthly chart with robust volumes for two consecutive months, displaying consistent higher highs and higher lows.
Furthermore, it has formed a strong bullish candlestick pattern on the weekly chart for five consecutive weeks, with higher tops and higher bottoms. According to Vidyan Sawant, assistant vice-president (technical research) at GEPL Capital, these patterns indicate strong bullish momentum in the stock.
Sawant points out that CEAT has broken the saucer pattern on the weekly chart and continues to display a bullish pattern with higher tops and higher bottoms on the daily chart.
The Relative Strength Index (RSI), a momentum indicator, has consistently remained above 60 on all time frames, further indicating strong bullish momentum ahead.
Sawant suggests that CEAT may face resistance near Rs 2300 and then Rs 2455 levels, while finding support near Rs 2000 and then Rs 1870 levels. Sawant advises targeting Rs 2300 and Rs 2455 with a stop loss set at Rs 2000.
Gaurav Bissa, Vice President (Equity Advisory) at Incred Equities, believes that if CEAT’s shares currently trade at the RSE level of 67 on the monthly chart and once it surpasses the level of 70, it has the potential to reach Rs 2300.
Over the past year, CEAT stock has gained 145%, starting from its one-year low of Rs 890 on June 20, 2022, and reaching a record high of Rs 2,181.60 on May 25, 2023.
Although there has been a slight decline due to profit-booking, with a target price of Rs 2455, the stock has the potential to strengthen by approximately 19% from its current level.
Please note that the information and opinions expressed on sharemarket.org.in are solely the personal views of the experts or brokerage firms.
The website or management bears no responsibility for the accuracy or reliability of such views. It is strongly advised that users seek certified expert advice before making any investment decisions.
