Mazagon Dock shares cross Rs 3,000 mark for first time, hit record high; what's next?

Shares of Mazagon Dock hit a record high on Tuesday amid the ongoing India-Pakistan tension and a Rs 63,000-crore deal to buy Rafale fighter jets from France. The multibagger stock rose 9.32% to 3,047 on BSE. It crossed the Rs 3,000 mark for the first time ever. Market cap of the firm rose to Rs 1.21 lakh crore on BSE. A total of Rs 12.31 lakh shares of the firm changed hands amounting to a turnover of Rs 363.25 crore. The defence stock has gained 154% in a year, 701% in two years and risen 1910% in three years.

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 61.4, signaling it's trading neither in the overbought nor in the oversold zone. Mazagon Dock shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox expects the stock to rise in the near term. "Mazagon Dock Shipbuilders is witnessing strong bullish momentum, currently quoting at Rs 3005 after a significant breakout from its prior consolidation zone. The stock has decisively surpassed its previous resistance levels, hitting an all-time high, supported by robust volume activity and favorable technical indicators. The recent breakout above Rs 2,750– Rs 2,800 levels signals a continuation of the uptrend, with the next potential upside targets seen in the Rs 3,250–Rs 3,400 zone over the medium term. owever, a sustained trade below Rs 2700 would negate the bullish view, potentially leading to consolidation or a corrective phase. Traders should trail their stop-loss accordingly while riding the ongoing momentum."

Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities said,, "Mazagon Dock has delivered a robust breakout from its Rectangle Chart Pattern, coinciding with a fresh all-time high (ATH). Interestingly, this move aligns with the breakout in the Nifty and defence index, which has simultaneously scaled new ATH levels a convergence that reinforces bullish conviction and adds weight to the stock’s breakout. The breakout is accompanied by a substantial surge in volumes, signaling growing participation and rising investor confidence in the stock’s upward trajectory. The broader structure remains firmly bullish, with the price comfortably trading above all key moving averages (10, 20, and 50 EMA), underlining a strong upward bias. On the momentum front, the RSI on both daily and weekly timeframes is holding above the 65 mark, highlighting persistent strength and suggesting further upside potential. Investors should consider using any short-term dips as buying opportunities, as the stock ventures into unexplored price zones. The defense sector as a whole is also showing strength, adding further support for continued momentum in upcoming sessions. Fresh entries can be considered at current levels, while any retracement toward ₹2,950 presents an attractive accumulation zone. A decisive move above ₹3,050 would confirm breakout strength and could potentially drive the stock toward higher levels in the range of ₹3,300–₹3,400."

A R Ramachandran, SEBI registered Independent analyst says, "Mazagon dock is bullish on the Daily charts but also slightly overbought with next resistance at 3202.  Investors should be booking profits as a Daily close below support of 2820 could  lead to a target of 2437 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.