Mazagon Dock shares gain 6% in early deals; time to sell on rise?

Shares of Mazagon Dock Shipbuilders rose over 6% in early deals amid volatility in the broader market on Tuesday. Mazagon Dock shares gained 6.26% to Rs 4462.95 today against the previous close of Rs 4,200.15 on BSE. The defence stock is still down 24% from its record high of Rs 5,859.95 on July 5, 2024 However, the stock is still up 133% in a year and gained 1,006.78 % in two years.

In the current session, the market cap of the firm stood at Rs 88,880.75 crore.

Total 1.02 lakh shares of the firm changed hands amounting to a turnover of Rs 44.78 crore. Mazagon Dock shares have a one-year beta of 1.3, indicating very high volatility during the period. In terms of technicals, the relative strength index (RSI) of Mazagon Dock stands at 36.8, 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 but higher than the 100 day, 150 day and 200 day moving averages.

Riyank Arora, technical analyst at Mehta Equities said, "For Mazagon Dock, the immediate support is at Rs 4,150, and major support is at Rs 4,100. The resistance levels are at Rs 4,450 and Rs 4,500. The stock shows a bearish trend with a negative outlook. A 'sell on rise' strategy is recommended, with potential exits near the Rs 4,450 to Rs 4,500 resistance zone."

Mandar Bhojane, Equity Research Analyst, Choice Broking said, "If we observe a bullish reversal around the Rs 3,950 level or the Rs 3,200 level—where the 100-day and 200-day EMAs are located—these levels could present fresh buying opportunities for investors targeting Rs 5,200 and Rs 5,600 in the short term. If the price closes above the Rs 4,600 level, the stock could further rally toward the Rs 5,200 and Rs 5,600 levels. The immediate support is at Rs 3,800.The RSI is currently trading near the oversold region, indicating a potential bullish reversal. Therefore, it is advisable to consider buying on dips, particularly around Rs 3,800 and Rs 3,500, to capitalize on potential retracements in the stock price. To manage risk prudently, a stop-loss (SL) at Rs 3,200 is recommended."

Mazagon Dock Shipbuilders Ltd (MDS) is a shipbuilding and offshore fabrication yard. The company's major activities include shipbuilding, ship repairs and fabrication of offshore structures. It provides warships, merchant ships, submarines, support vessels, offshore platforms, passenger cum cargo vessels, trawlers, main and helidecks and barges.