Momentum Pick: Buy-the-dip in multibagger Cochin Shipyard as analysts see up to 30% upside
Cochin Shipyard (CSL) shares are trading at a 13% discount from their 52-week high on the NSE and have been on a declining curve over the past six trading sessions. Yet, the momentum is not lost and the stock could gain up to 30% from current levels, as momentum remains intact on the technical charts, suggest analysts.
Cochin Shipyard shares hit their 52-week high of Rs 1258.50 on September 8 and since then they have seen corrections in six successive trading sessions on the closing price basis as investors have looked to book profits after a big rally in an otherwise buoyant stock markets.
Multibagger Cochin Shipyard’s past one-year journey reveals a 170% uptick in the stock price which is nearly 12-fold over the returns given by Nifty50 during this period.
On a year-to-date basis, the gains are to the tune of 105%.
The PSU stock is currently trading above seven out of its eight Simple Moving Averages (SMAs) with six in nine oscillators trending in the bullish zone, according to Trendlyne data.
Rajesh Palviya, Senior Vice President, Technical and Derivatives Research at Axis Securities said that Cochin Shipyard shares are trading with a strong uptrend, forming a series of higher tops and bottoms across all the time frames, indicating bullish sentiments.
On the weekly chart, the stock has also witnessed breakout from the rounding bottom formation which supports bullish sentiments, he said adding that the past couple of months have seen stock trading with rising volumes which signifies increased participation of the bulls.
“The stock is well placed above its 20, 50, 100 and 200-day SMAs, which reconfirms a strong uptrend. On the quarterly chart, the stock has witnessed a multi-year breakout around Rs 630 levels which
