03 Apr , 2024 By : Debdeep Gupta
Shares of shipbuilding and related services companies such as Cochin Shipyard, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders surged up to 10 percent on April 3 on high volumes amid expectations of strong Q4 earnings and healthy order book positions.
The surge also comes after domestic brokerage Prabhudas Lilladher in a thematic report highlighted that technicals suggest further upside in these stocks.
The stock of Cochin Shipyard surged nearly 8 percent to hit a record high of Rs 1,062.00 on the NSE. A total of 99 lakh Cochin Shipyard shares changed hands on the BSE and the NSE combined, compared to the one-month average trading volume of 32 lakh shares.
Cochin Shipyard, after a short consolidation phase, has given a clear breakout above the rectangular box formation at 940 levels and with bias getting stronger, has scope for a further fresh round of upward move, said Prabhudas Lilladher (PL) in its report, setting targets at Rs 1,120-1,270 levels. "One can maintain the stop loss at Rs 890 levels," it said.
Shares of Mazagon Dock were trading nearly 11 percent higher at Rs 2,225.25 on the NSE. So far in the day, a total of 61 lakh shares of the PSU changed hands on BSE and NSE combined, compared to the one-month average trading volume of 10 lakh shares.
The stock has witnessed a decent slide in the last two months and after a short consolidation, has indicated a bullish candle formation moving past the important 200-period moving average of 1,975 levels to improve the bias and can anticipate further upward move in the coming days, said the brokerage.
"The RSI has recovered strongly from the oversold zone indicating a positive trend reversal has signalled a 'buy'. We suggest buying the stock for upside targets of Rs 2,500 levels keeping the stop loss at around Rs 1,780 levels," the brokerage said.
The stock of Garden Reach Shipbuilders rallied 7 percent on April 3. At 12:16 pm, it traded at Rs 904 on the NSE. Technicals show that after the decent correction witnessed from the 920 zone, the GRS stock has recently taken support near the 680 zone.
A decent pullback is likely to push GRS stock past the important 200 MA and 50 EMA levels "to improve the bias anticipating for further rise," PL said, adding, "The RSI is on the rise indicating strength and much upside potential visible from the current rate."
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