CEAT Stock Surges 8% Post Strong Q4: SEBI RA Sanyam Vaish Calls It A ‘Comeback Story’
Synopsis
However, Vaish has cautioned against chasing the stock at elevated levels, instead recommending that investors monitor pullbacks toward support zones for entry opportunities.
CEAT shares surged 8% on Wednesday as investors cheered its strong performance in fourth-quarter earnings.
The company’s latest quarterly results showcased critical strengths that resonated with investors: sustained revenue momentum, improved operational efficiency through cost optimization, and strategic investments in future growth drivers, including global expansion and factory modernisation.
The tyre maker’s announcement of a substantial dividend payout further bolstered sentiment.
SEBI-registered analyst Sanyam Vaish shared his outlook on CEAT following the earnings announcement.
From a technical perspective, he highlighted that CEAT's stock broke decisively above all key exponential moving averages (EMAs), accompanied by high trading volumes—a signal interpreted as institutional accumulation.
Sanyam emphasised the confluence of fundamental resilience and technical momentum, describing this company’s trajectory as a "comeback story" fuelled by demand recovery in the automotive sector and operational streamlining.
The analyst sees immediate support at the ₹3,214 mark, a resistance-turned-support zone, followed by a critical SMA cluster near ₹3,113. Should momentum wane, the ₹2,941 level represents a robust demand zone.
On the upside, Sanyam believes that the stock faces its next hurdle at ₹3,408, with a decisive breach potentially unlocking a rally toward ₹3,600 and beyond.
While Sanyam is structurally bullish on the counter, he advises caution against chasing the stock at elevated levels, instead recommending that investors monitor pullbacks toward support zones for entry opportunities.
On Stocktwits, retail sentiment has turned ‘extremely bullish’ for the stock.
CEAT stock has gained 3% year-to-date.
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