Three defence-related stocks namely Cochin Shipyard Ltd, BEML Ltd and Garden Reach Shipbuilders & Engineers Ltd can deliver healthy returns in the short term, said KKunal V Parar, Vice-President of Technical Research and Algo at Choice Broking. These three stocks are indicating a potential bounceback after the recent slide, Parar said.
Garden Reach Shipbuilders & Engineers | Target price range: Rs 2,000-2,230 | Stop loss: Rs 1,670 Parar said the GRSE stock has taken support at its previous bottom on the daily chart, indicating a potential bounce back. Additionally, it has formed a 'Bullish Engulfing' candlestick pattern, signaling a possible bullish reversal.
The Garden Reach stock has found support at its 100-day Exponential Moving Average (EMA), reinforcing the likelihood of a rebound. "The daily momentum indicator, RSI, is also holding strong at the 30 mark, suggesting positive momentum in the stock. Given this technical setup, we anticipate a solid upside move towards the Rs 2,000-2,230 levels, with a strict stop-loss at Rs 1,670, Parar said.
Cochin Shipyard | Target price range: Rs 2,010-2,280 | Stop loss: Rs 1,630 On the daily chart, the Cochin Shipyard stock is trading near its strong support at the 200-day Moving Average, indicating a potential bounce back. The stock has solid support at the 61.80 per cent Fibonacci retracement level, positioned at Rs 1,580, further reinforcing the likelihood of a rebound, Parar said.
"Moreover, the stock has taken support at its previous bottom, strengthening the case for a recovery. The daily momentum indicator RSI has also broken out of its downward falling trendline, signaling positive momentum in the stock. Considering this technical structure, we expect an upside move towards the Rs 2,010-2,280 levels, with a strict stop-loss at Rs 1,630," he said.
BEML | Target price range: Rs 3,890-4,150 | Stop loss: Rs 3,540 On the daily chart, the BEML stock has found support at its 200-day Exponential Moving Average, indicating a potential bounce back. The formation of a 'Bullish Harami' candlestick pattern also signals a bullish reversal.
"The stock is holding support at a key horizontal trendline, further suggesting a rebound. The daily momentum indicator RSI has also displayed positive divergence, highlighting improved momentum. Based on this technical setup, we expect an upside move toward the Rs 3,890-4,150 range, with a strict stop-loss at Rs 3,540, Parar said.