Ceat Ltd, slid from Rs 70 in the beginning of the year to Rs 27 on June 13. However, it has now reversed from the bottom and is currently quoting at Rs 33. The reversal has been accompanied by high volumes. Approximately 19,410 shares were picked up in the last trading session. The scrip presents an ideal opportunity for traders, especially if it is backed by money-powered bulls. The drop from Rs 39, beginning mid-May, has been quite steep. This itself is the in-built mechanism for the bounce-back.

The scrip in its upward move can meet with resistance at Rs 39. When it passes through that, it will again meet a resistance at Rs 56. But what one should look forward is the opportunity of the scrip going back to the Rs 70-level. The tyre industry is currently enjoying the benefit of dropping raw material rubber prices. One can get into this scrip both for short-term trading as well as long-term investment. In any case your risk is limited to Rs 27, where you can keep a stop loss. The plus point in the scrip is after touching Rs 27 on its rise it went up once and on reverse it did not go back to Rs 27.

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