Mazagon Dock shares rise for fourth session; price targets, technicals, outlook and more

Shares of Mazagon Dock Shipbuilders were trdaing higher for the fourth straight session on Friday. The stock has risen from Rs 3,920 on October 7 to Rs 4,483.60 in the current session.  At the current level, the stock is down 25% from its 52 week high of Rs 5859.95 on BSE. The multibagger stock rose 1.18% to Rs 4483.60 on Friday amid highly volatile market movement. Market cap of the firm climbed at Rs 89,465 crore. Mazagon Dock shares have gained 104% in a year and risen 668% in two years.

Total 0.74 lakh shares of the firm changed hands amounting to a turnover of Rs 32.79 crore. Mazagon Dock shares have a one-year beta of 1.4, indicating very high volatility during the period. 

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 56.2, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 100 day, 150 day, 200 day but lower than the 50 day moving average.

Ameya Ranadive, CMT CFTe and Senior Technical Analyst at StoxBox  has assigned a price target of Rs 4,750- Rs 4,900 for mid-term investors. Stop loss can be fixed at Rs 3,800. 

"Mazagon Dock is experiencing a phase of profit-booking as the stock consolidates in both time and price. Despite the pullback, the stock has recently regained strength, moving above its 20- and 50-day EMAs, a positive signal for a potential upward move. With its current technical setup, it presents an appealing buy opportunity at these levels. However, the real momentum could kick in once the stock breaks above Rs 4,700, which may unlock significant upside potential. A mean-reversion trade strategy could be viable here, with long positions being considered as long as the price remains above the 100-day EMA, where a stop-loss could be placed for risk management. However, caution is advised if the stock breaches the Rs 3,800 level, as that would indicate a shift in sentiment," said Ranadive.

Sebi-registered research analyst AR Ramachandran said, "Mazagon Dock stock price is bullish on the Daily charts with strong support at Rs 4150. A daily close above the resistance of Rs 4544 could lead to a target of Rs 5,000 in the near term."

Mazagon Dock Shipbuilders Ltd (MDSL) is a leading defence public sector undertaking shipyard under the Ministry of Defence (MoD). Mazagon Dock is primarily engaged in constructing and repairing warships and submarines for MoD and other types of vessels i.e. cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. for commercial clients.