Buy CEAT, target Rs 900: Pritesh Mehta

Pritesh Mehta, Head Technical Research at IIFL recommends a buy on CEAT with a target price of Rs 900 and a strict stop loss placed at Rs 827. The stock has slipped 20 per cent so far in the calendar year 2016. The stock is looking bullish on the charts.

CEAT is a high beta stock (1.98) and is trading well below its 50-day, 100-day and 200-day moving average of Rs 950.19, Rs 989.40 and Rs 1037.41, respectively, as per data collated by ETMarkets.com. The stock is trading with a P/E of 7.67 and P/B of 2.07.