HDFC Securities Recommends To Buy This Miniratna Stock Based On Technicals

Indian markets tracking global markets ended on a positive note as market participants keep a close eye on the Fed's conference for clues on the US central bank's policy outlook. Nifty in trade today ended higher by 0.2% at 17559, while Sensex ended with gains of 0.1% or 59 points at 58,834. Broader markets outperformed with Nifty midcap 100 gaining by over 0.55%.

Meanwhile, brokerage firm has given a buy call on the stock of Cochin Shipyard based on its technicals for double digit gains in just 3 months.

Cochin Shipyard: Buy | Target price: Rs. 405 | CMP: Rs. 364.45 | Stop loss: 324

The brokerage has recommended the Miniratna Category-I CPSE stock - Cochin Shipyard. The brokerage has listed the scrip as its MTF positional pick. Typically these positional calls by experts and brokerages are made after taking into account the stock's technicals.

Level for averaging in the stock is Rs. 333

Technical observations

Below are the technical observations made on the scrip:

Stock price has broken out from the downward sloping trendline on the weekly chart

Stock price has broken out on the daily chart where it is trading at highest level since May 2022

Primary trend of Stock is positive as it is trading above its 50, 100 and 200 day moving averages.

Plus DI is trading above minus DI while ADX line is placed above 25 and started rising, Indicating stock
price is likely to gather momentum in the current uptrend

Momentum Oscillators like RSI(11) and MFI(10) are in rising mode and placed above 60 on the weekly
chart, indicating strength in the current uptrend

Considering the Technical evidences discussed above, we recommend buying Cochin Shipyard at CMP of
349.1 and average at 333 for the upside target of 377 and 405, keeping a stop-loss at 324, notes the brokerage firm.

About Cochin Shipyard

It is a small cap company from the ship building space. In India Cochin Shipyard is the largest ship building and repairing facility. Of late the company has opened a shipbuilding facility in Howarh.

 

Disclaimer

The stock recommendation is made by the brokerage house HDFC Securities. Readers should not construe the article as an investment advice into the stock and should instead indulge in their own due-diligence.