Shares of Mazagon Dock Shipbuilders have zoomed 307 per cent since February low to hit a fresh record of Rs 913.85 in Wednesday’s trade. In fact, at 217 per cent return, Mazagon Dock Shipbuilders is the secon-best BSE500 constituent after Adani Power (219 per cent) in 2022 so far. Technical analysts said the stock is in overnight territory and a consolidation for the stock is likely. On the upside, levels of Rs 940-1,050 are achievable, they said.
Tirthankar Das of Ashika Stock Broking said Mazagon Dock Shipbuilders is in strong up trend and is forming higher high-low in majority time frames. Das said the Mazagon stock has recently generated a breakout above the Bullish Flag formation, signalling continuation of the uptrend.
“It offers fresh entry opportunity. The recent price rise is supported by strong volume and the breakout seems genuine due to rising participation. But due to overbought reading in oscillators on the weekly time frame (14-period RSI) might drive the stock to a consolidation phase amidst the range of Rs 835-915 in near term. Thereafter, forming a bottom at around Rs 835, one can expect the stock to maintain its positive bias and head towards extended 138.2 epr cent retracement (high: Rs 888; Low: Rs 748) at Rs 940 followed by Rs 960 (150 per cent retracement),” Das said.
Osho Krishan of Angel One said Mazagon has witnessed a spectacular run post the consolidation zone breakout near Rs 650-odd levels and has gained substantial traction since then. The stock, he said, is currently placed at the lifetime high zone and hovering well above all the major exponential moving averages on the daily chart, suggesting inherent strength.
“On the technical front, the recent swing low of Rs 748 that coincides with the 21-DEMA is likely to provide sacrosanct support in the near term. On the higher end, the stock looks promising to march northward in uncharted territory. Simultaneously, in the last couple of trading sessions, the stock has gained volume-based traction that adds to the bullish quotient and can potentially test the Rs 950-980 odd zone in a comparable period,” Osho said.
Independent Analyst Manish Shah said Mazgaon is in a firm trend as shows by high ADX values and moving averages. The stock has seen an incredible 190 per cent rally since August 30, he said.
The basic tenet of price action analysis is that price can remain in a firm uptrend till the time it reverses, Shah said.
“In last two weeks, the price has seen sideways consolidation in the Rs 890-760 range.On the upside, the stock should see a rally towards Rs 1,050 and above that to Rs 1210 level. The support for the stock is at Rs 760. The stock should not trade below the support of Rs 760. Therefore protective stops should be out below Rs760,” he said.
Meanwhile, Amit Trivedi of YES Securities sees a mild consolidation for the stock in the near term. “Eventually, further rally till Rs 950 is expected,” he said.
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