CEAT slips after Jwalamukhi Investment trims stake

CEAT fell 0.94% to Rs 911.15 after Jwalamukhi Investments Holdings reduced stake in the tyre manufacturer to 8.72% from 10.92% till 6 July 2020.

Jwalamukhi Investment Holdings, an investment arm of private equity firm Westbridge Capital, sold 8,92,329 shares, or 2.2% stake, of CEAT via open market sales between 24 April 2019 to 6 July 2020. The disclosure was made post market hours yesterday, 7 July 2020.

On the technical front, CEAT's RSI (relative strength index) stood at 52.665. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading in between its 50-day moving average (DMA) placed at Rs 849.10, with will act as a support in the near term and its 200-day moving average (DMA) placed at Rs 914.84, would act as a resistance in the upcoming trade.

CEAT's consolidated net profit declined 19.6% to Rs 51.72 crore on 10.6% fall in net sales to Rs 1,573.41 crore in Q4 March 2020 over Q4 March 2019.

CEAT, the flagship company of RPG Enterprises, is a tyre manufacturers and has a strong presence in global markets.

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