CEAT - Descending Triangle breakout soon

Sep 27, 2021

Entry – CMP 1,330 ( can enter around 1280-1300 levels too to tighten the Stop loss)
Stop loss -1215 Daily close (Tight Stop 1280)
Target 1 – 1730
Target 2- 1950
Duration – 2-3 years

Co has good Fundamentals and is available at beaten down prices
Co is one of the largest tyre manufacturers and is one of the fastest growing tyre companies in India
Co has debt to equity around 0.5 which is reasonable
Current financial year (Mar 2021) Co was good and TTM is also showing growth
Co is trading at Par Valuation to its peers

Technical -
Descending Triangle breakout is Bearish Pattern, however there is no hard and fast rule that it should break on lower side only.
Seeing, Euphoria of Market. Non Performing Sector will soon catch up.
Hence, we are having Bullish View on this script.

Important: Do not forget to take Stop loss if it starts falling since we are trading against pattern.