Friday, February 28, 2014

CEAT LTD multibagger of this year –Technofunda analysis(Technical analysis Mumbai India Trading.)

Traders are good at giving short term calls. But then you come across stocks which have the capability of becoming multibaggers in a year or two. Ceat is one of those examples which is showing excellent technical chart formation with strong fundamentals. If we see the past three years profits they are -16.11(March 2009), 161.04(March 2010), 22.28(March 2011), 7.54(March 2012), 106.35(March 2013)( All figures in Crore) and this year it is expected to cross again more than 100 crore.

Please note this are net profit after paying taxes and expenses which shows how strong CEAT fundamentals are

Some people has raised concern regarding the fire in Bhandup Plant. But as per our analysis that loss will be 1 to 2 crore maximum. And that plant is already operational which emphasizes the fact it was a minor thing.  


Now coming to the technical part we feel CEAT has come down and is now available at great rates. The Bhandup fire issue was exaggerated and it pulled the stock down because of unnecessary fear. The stock is currently at its confident support level as shown in the below figure. This support line has been tested 6 times which gives a very high importance to the support line.  


Some days back the stock has already confirmed a DOJI with a confirmation. A DOJI is a sign of fight between buyers and sellers. Due to past week negative news lot of sellers got activated but as the management confirmed that the loss was not huge buyers came into actions.

Also when the stock value was going down participation was very less, indicating bullishness.


You can buy this stock at these levels for a return of minimum 20% in the coming 1 year.

If you are interested do buy our course learn trading step by step. You can see a sample video of the same from here.  




Please read our disclaimers before investing http://tradingkamai.blogspot.in/p/disclaimer.html 




No comments:

Post a Comment