Produced by: Aseem Thapliyal
Shares of Cochin Shipyard Ltd were trading in the overbought zone even as the defence stock climbed 8.27% to record high of Rs 1170.05 in the afternoon session on Monday. Market cap of the firm rose to Rs 29,997 crore.
Cochin Shipyard's RSI rose to 73.8, signaling the stock was trading in overbought zone. An RSI below 30 signals the stock is trading in the oversold zone and above 70 signals that the stock is in thje overbought zone.
The rally in the defence stock came after the firm said today it inked the Master Shipyard Repair Agreement (MSRA) with United States Navy.
Cochin Shipyard stock has clocked multibagger returns of 369% in the last one year and risen 113% in six months. Cochin Shipyard stock also has a one-year beta of 0.4, indicating very low volatility during the period.
Riyank Arora, Technical Analyst at Mehta Equities Ltd said, "The stock witnessed a strong breakout above its important resistance mark of 945.00 on April 1st, 2024, and has been moving in a continuous uptrend rally since then, touching levels of 1074 in the last three trading days. We can expect higher levels of 1125 - 1150 with a trailing stop-loss placed at the 1020 mark."
Vaishali Parekh, Vice President-Technical Research,Prabhudas Lilladher said,"Cochin Shipyard after a short consolidation phase has given a clear breakout above the rectangular box formation at Rs 940 levels and with bias getting stronger has scope for further fresh round of upward move with targets of Rs 1120 and Rs 1270 levels. One can maintain the stop loss at Rs 890 levels."
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