Smooth sailing for shipbuilders in choppy markets; up to 27% upside likely

Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers, and Cochin Shipyard have surged 129 per cent, 121 per cent, and 49 per cent each so far this year

Shares of shipbuilding companies have been hogging the limelight for the past few sessions as they smartly outperformed the benchmark indices. Despite the Indian equities going through a rough patch, largely due to interest rate hikes by the US Federal Reserve, strength in the US Dollar, and the Russia-Ukraine conflict, the shipbuilding stocks have roared with whopping gains. 

So far this calendar year, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers, and Cochin Shipyard have surged 129 per cent, 121 per cent, and 49 per cent, respectively, compared to a -1 per cent decline each in the BSE Sensex, and Nifty 50.

Here's the technical outlook on Shipbuilding stocks, and their future prospects: -

Mazagon Dock Shipbuilders Ltd (MAZDOCK)

Outlook: Medium-term outlook bullish above Rs 500

The stock of Mazagon Dock Shipbuilders has remained one of the best performers on the bourses this year, as the price doubled. Major moves emerged in the stock over the last three months, when the stock price rose 110 per cent. The medium-term outlook is secured above Rs 500 levels, and the bullish sentiment could drive the stock toward Rs 750 levels. CLICK HERE FOR THE CHART

Garden Reach Shipbuilders & Engineers Ltd (GRSE)

Outlook: Fresh upside may see rally towards Rs 500

There is a perfect "Rounding Bottom" breakout on the weekly chart. This move has initiated a fresh upside that could see Rs 500 on an immediate scale. A decisive rally over Rs 380 is being triggered by volume support as they show a rising set-up, according to the daily chart. The current trend looks promising with the chart structure reflecting long green candles with firm volumes. CLICK HERE FOR THE CHART

Cochin Shipyard Ltd (COCHINSHIP)

Outlook: Enters overbought territory with firm volumes

For the first time in its history, Cochin Shipyard's stock has entered the overbought territory on the Relative Strength Index (RSI) with volumes like never before, as per the weekly chart. The trend is buoyant, and resilient to any selling pressure. Thus, as long as the stock price stays over the cushion of Rs 450, the medium-term stance rests with bulls, who are aiming at Rs 600-mark in the short-term. CLICK HERE FOR THE CHART