Ukraine-Russia war pushes freight charges up. Time to buy shipping stocks?

GE Shipping could see another 5 per cent jump, while other shipping stocks are displaying testing times

The shares of Great Eastern Shipping Company, Seamec, and Shipping Corporation of India were mixed on Monday as the Russia-Ukraine crisis kept investors on the edge.

The invasion of Ukraine by Russian forces has triggered panic among Indian exporters, coming as it does after over a year of high freight rates and container shortages. Freight rates to several ports in India had jumped eight to ten times last year and are already on a rise in the last one week.

According to shipping companies, the cost of chartering a 4,200 TEU (20-foot equivalent unit) has soared from around $8,000 a day eight months ago to around $70,000 a day now. As a result of the Russian invasion, it is expected to touch $100,000 a day. READ MORE HERE

Against this backdrop, here's the list outlook for shipping stocks:

Great Eastern Shipping Co. Ltd (GESHIP)
Likely target: Rs 340
Upside potential: 5%

The stock has been trading sideways amid the developing geopolitical events. On the lower side, the support of Rs 308, which is its 50-day moving average (DMA), is proving to be effective. Moreover, the stock has overcome the upper hurdle of Rs 325 with a positive crossover of the Relative Strength Index (RSI), demonstrating a robust strength with an upward bias. The shares of Great Eastern Shipping Co. Ltd could see Rs 340 as the immediate target, its 200-DMA level. CLICK HERE FOR THE CHART
 
Seamec Ltd (SEAMECLTD)
Outlook: Stock is testing support level

Early February turned out to be healthy for the stock as it claimed new historic high of Rs 1,306 level. This momentum has held the support of Rs 980, which remains the neckline support for the bullish outlook. As long as the stock defends this mark on a closing basis, the positive sentiment may add muscle to the uptrend. The present scenario is testing the same and needs to be carefully monitored. CLICK HERE FOR THE CHART

Shipping Corporation of India Ltd (SCI)
Outlook: Bearish signals

There is a clear bearish signal of "Head and Shoulder", which forced the stock to slip downward gradually, as per the daily chart. Now, the stock must take out the resistance of Rs 120 to revive the bullish bias. And until that happens, the stock could dive towards Rs 90 level. CLICK HERE FOR THE CHART