The aim is to analyse the reason behind the why and how to arrive at a logical conclusion and in this session we are discussing the likely downtrend in short term in tyre stocks.
The news which unfolded was that GST Council has cut GST rate on retreaded tyres from 28% currently to 18%. However, GST rate on new tyres has been kept unchanged at 28%.
Our Take on the News
The implications of this news is that the news is negative for domestic tyre companies, especially
those with high exposure to M&HCV segment. It will further make retreading process price competitive against purchase of new tyres.
We are of the opinion that this should not have had been done as a retreaded tyre is a safety threat on the road.
Nonetheless the action of reduction has been undertaken and as a result we are likely to see downtrend in the major tyre manufacturer like MRF and other tyre companies too. However we are undertaking analysis of MRF as it is a leader in tyre manufacturing. Please have a look at the chart below. Below 67000 level, stock can touch 66000, 64000,62000 levels. Donot buy this stock unless it moves above 67000 with volume. Do remember to check our intraday tip which gets you profit everyday by 11 AM.
The news which unfolded was that GST Council has cut GST rate on retreaded tyres from 28% currently to 18%. However, GST rate on new tyres has been kept unchanged at 28%.
Our Take on the News
The implications of this news is that the news is negative for domestic tyre companies, especially
those with high exposure to M&HCV segment. It will further make retreading process price competitive against purchase of new tyres.
We are of the opinion that this should not have had been done as a retreaded tyre is a safety threat on the road.
Nonetheless the action of reduction has been undertaken and as a result we are likely to see downtrend in the major tyre manufacturer like MRF and other tyre companies too. However we are undertaking analysis of MRF as it is a leader in tyre manufacturing. Please have a look at the chart below. Below 67000 level, stock can touch 66000, 64000,62000 levels. Donot buy this stock unless it moves above 67000 with volume. Do remember to check our intraday tip which gets you profit everyday by 11 AM.
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should Trade Less But Trade Accurately & this is Achieved with our Tip.
