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
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.
If you are interested do buy our course learn trading step by step. You can see a sample video of the same from here.
See syllabus for Technical analysis training in Mumbai, India.
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