Cochin Shipyard shares rise for third session, hit record high; can they reach Rs 1,350 mark?

Shares of Cochin Shipyard Ltd hit a record high today, rising for the third straight session amid a rally in the broader market. Cochin Shipyard shares gained 11% to Rs 1225 against the previous close of Rs 1105.15 on BSE. Market cap of the defence stock climbed to Rs 32,049 crore.

Cochin Shipyard stock opened higher at Rs 1116.85 on BSE. Total 8.80 lakh shares of the firm changed hands amounting to a high turnover of Rs 104.15 crore on BSE. Cochin Shipyard has a one-year beta of 0.4, indicating very low volatility during the period.

The stock has clocked multibagger returns of 149.31% in the last six months and risen 398% in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 64.5, signaling the stock is trading neither in the overbought nor in the oversold zone. Cochin Shipyard shares are trading higher than the 5 day, 20 day, 50 day, 100 day, 200 day moving averages.

Jigar S Patel, senior manager, equity research at Anand Rathi said, "Over the past three trading sessions, Cochin Shipyard has exhibited a pattern of consolidation within a specific price range, fluctuating between Rs 1060 and Rs 1140. However, in a recent development, the stock has surpassed this range and is now consistently maintaining a position above it. This breakout is particularly significant as it has also surpassed the previous all-time high of Rs 1171, which typically signals a bullish sentiment among investors. Furthermore, analysing the technical indicators, the Relative Strength Index (RSI) on a daily basis has undergone a reversal from the 60 level, indicating a shift towards bullish momentum. Presently, the RSI is positioned above the 70 level, further reinforcing the bullish outlook for the stock. In terms of potential price movements, it is anticipated that the stock will find support in the range of Rs 1150 to Rs 1170, with expectations of further upside movement towards the Rs 1350 mark within the span of the next 10 to 12 trading sessions."

Market expert Ravi Singh said, "Cochin Shipyard stock has seen a dream rally in past one year due to government focus on indigenisation of defence. The company has a good set of sales number and order book size. On the technical front combining momentum indicators the stock is in overbought category, so one should wait for a dip for fresh positions and existing positions should hold with a stop at Rs 1030."

Abhijeet from Tip2trades said, "Cochin Shipyard is bullish but also overbought on the Daily charts with next resistance at Rs 1272. Investors should be booking profits at current levels as a Daily close below support of Rs 1093 could lead to a target of Rs 978 in the near term."