Ceat Tyres rolls up post Q1 results, stock gives range breakout

Auto Tyres and rubber tubes company, Ceat surged as much as 9.5 per cent in Friday’s trade on reporting Q1FY19 results. The company’s consolidated total income came in at Rs. 1,710 crores, registering 1.7 per cent and 4.3 per cent QoQ and YoY growth, respectively. Further, the company registered profit of Rs. 72.03 crores as compared to Rs. 1.62 crore (after deducting excise duty on sale of goods in expenses) in the corresponding quarter of last year. The earnings growth was on the back of decline in total expenditure. EPS stood at Rs. 17.81 as against Rs. 0.40 in Q1FY18.

The stock of Ceat had been trading in the range of Rs. 1,230 and Rs. 1,330 since June 21. The stock hit multiple support near 1230 levels which is also near to its 52-week low levels. On Friday, the stock bounced back very sharply, breaching its two prior resistances at 1327 followed by 1351. The stock gave a sizeable Bullish candle and breached its 50-day EMA resistance at 1340 levels. The bounce back was supported by spurt in volumes and 14-period RSI crossing 55 levels depicting momentum. On the weekly time frame, the stock has formed a kind of Bullish Engulfing candle which if confirmed in the next week can give fresh buying in the stock.