On October 24, 2024, shares of CEAT Ltd witnessed a decline of 0.72%, closing at ₹2810.55 amid a broader market dip. As the financial markets reacted to various economic signals, CEAT’s stock also felt the pressure alongside other major indices.
Opening and Closing Prices
The stock opened the day at ₹2833, only to close lower at ₹2810.55. This decline was a part of a larger trend affecting various sectors in the stock market.
Daily Trading Range
During trading hours, CEAT shares demonstrated a daily range with a high of ₹2857.4 and a low of ₹2784, illustrating the stock’s volatility and investors’ reactions to market changes.
Current Trading Status
As of 1:00 PM, CEAT shares were trading at ₹2810.55, reflecting a decrease of 0.72% from the previous day’s closing price, continuing the downward trend.
Market Indices Performance
The broader market was also showing weakness, with the Nifty index down by 0.09% and the Sensex barely holding steady with a marginal decline of 0.02%.
Technical Indicators
From a technical perspective, CEAT is currently trading above the 100-day and 300-day Simple Moving Averages (SMA) but is below the 5, 10, 20, and 50-day SMAs. This may suggest that short-term trends are weaker than long-term signals. Key resistance levels are identified at ₹2881.23, ₹2939.77, and ₹2974.88, while support levels can be found at ₹2787.58, ₹2752.47, and ₹2693.93.
Trading Volume Analysis
Trading volume on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) is notably reduced, dropping by 26.99% from the previous session. This decreased activity signifies reduced investor interest at current price levels.
Fundamental Analysis
Looking at the fundamentals, CEAT has a Return on Equity (ROE) of 17.18%, a Price-to-Earnings (P/E) ratio of 20.22, and a Price-to-Book (P/B) ratio of 2.72. These metrics provide insights into the company’s profitability relative to its equity and how its stock is valued compared to its book value.
Shareholding Pattern Overview
The shareholding structure reveals that promoter holding currently stands at 0.00%, indicating no stake held by company founders. Conversely, there has been an increase in Mutual Fund holdings from 4.15% in June to 4.48% in September, while Foreign Institutional Investor (FII) holdings have decreased from 18.75% to 16.64% during the same period.
Market Outlook
Despite the current dip, the market sentiment remains cautiously optimistic. Analysts project a median one-year forecast suggesting a potential rebound with a 13.00% upside, targeting a share price of ₹3176.00.
Peer Performance Comparison
When compared to its peers, CEAT’s performance is disappointing, as companies like MRF, Apollo Tyres, and JK Tyre & Industries have also seen declines. However, Bengal & Assam Company shares are on an upward trend, highlighting a mixed sector performance.
Conclusion
CEAT’s recent performance reflects the challenges faced amid a fluctuating market environment. With current price levels and anticipated forecasts, investors may consider various strategies as they navigate through this dynamic landscape. The presence of mutual funds may indicate some institutional confidence, but trends in FII holding could raise concerns.
FAQ
Q: What caused CEAT’s share price decline today?
A: The decline is part of a broader market dip, affecting multiple stocks across various sectors.
Q: What are the key technical levels to watch for CEAT shares?
A: Key resistance levels include ₹2881.23, ₹2939.77, and ₹2974.88. Support levels are at ₹2787.58, ₹2752.47, and ₹2693.93.
Q: How are CEAT’s shares performing relative to its competitors?
A: While CEAT shares are declining, peers like MRF and Apollo Tyres are experiencing similar downturns, indicating a sector-wide trend.
