SCI, GE Shipping in focus as Baltic Dry Index up 47% in 1-mth; time to buy?

The Baltic Dry Index now quotes at a 8-month high. Technical charts hint at a potential 36 per cent upside for select shipping stocks like SCI, Dredging and Seamec. Details here

Shares of shipping related companies are likely to be in focus as the Baltic Dry Index - the shipping and trade index - has surged to a 8-month high at 1,968. The index has rallied as much as 47 per cent from levels of 1,338 in the last one month. 

What is the Baltic Dry Index & its impact?

  The Baltic Dry Index (BDI) represents the average price for shipping dry bulk materials via sea routes, and is often considered as a leading indicator of economic activity for it reflects the supply and demand for raw materials used in manufacturing.  The London-based Baltic Exchange calculates the BDI by assessing multiple shipping rates across more than 20 sea routes.  In general, a rise in the Baltic Dry Index indicates better prospects of future economic growth based on higher demand for raw materials. The BDI also spikes in times of global conflicts, trade tensions and disruptions in supply chains. Analysts believe that higher shipping rates tend to benefit the shipping sector.  Catch Stock Market Latest Updates Today LIVE  

Shipping stocks on the NSE

  Over the last one month, shipping-related shares such as - ABS Marine Services and Arvind Port and Infra from the NSE SME segment have rallied up 31.6 per cent and 26.6 per cent, respectively. That apart, Sadhav Shipping has gained nearly 9 per cent.  On the NSE-main platform, Shipping Corporation of India (SCI) was the lead gainer - up 24.6 per cent in the last one month. Dredging Corporation of India, The Great Eastern Shipping Company (GE Shipping) and Seamec have advanced 1 - 3 per cent each.  ALSO READ | HAL vs BEL: One defence stock that is a must-have in your portfolio  Against this background, here's a technical outlook on the prominent shipping stocks listed on the NSE. 

SCI

Current Price: ₹222  Upside Potential: 26.1%  Support: ₹214; ₹202  Resistance: ₹245; ₹263; ₹274  Shares of Shipping Corporation of India were down 5.5 per cent in Tuesday's trading session. The stock, however, seems favourably placed on the technical charts. The near-term bias for SCI stock is likely to remain positive as long as the stock trades above ₹214; below which support for the stock exists at ₹202. On the upside, the stock can potentially rally to ₹280 levels, with interim resistance likely around ₹245, ₹263 and ₹274 levels. CLICK HERE FOR THE CHART 

GE Shipping

Current Price: ₹980  Downside Risk: 7.1%  Support: ₹960  Resistance: ₹1,022; ₹1,055  GE Shipping stock has slipped 2.5 per cent in today's trading session. The stock has been facing resistance around its 200-Day Moving Average (200-DMA), which stands at ₹1,022, for the last three days. The medium-term chart shows the presence of an overhead hurdle at ₹1,055. Thus, the overall bias at the counter is likely to remain tepid as long as the stock sustains below these 2 hurdles. On the downside, the stock may re-test levels of ₹910 - ₹920; with near support seen at ₹960. CLICK HERE FOR THE CHART  ALSO READ | How to trade HPCL, BPCL, ONGC as Crude Oil boils to 5-month high 

Dredging Corporation of India

Current Price: ₹734  Upside Potential: 36.2%  Support: ₹700  Resistance: ₹778; ₹820; ₹860; ₹900; ₹970  Dredging Corporation of India stock is likely to trade with a favourable bias as long as the stock holds above ₹700-mark. On the upside, the stock needs to break and trade consistently above its 200-DMA, which stands at ₹778 for further strength. As such, the stock can potentially sail towards ₹1,000-mark. Interim resistance for the stock can be anticipated around ₹820, ₹860, ₹900 and ₹970 levels. CLICK HERE FOR THE CHART 

Seamec

Current Price: ₹861  Upside Potential: 27.8%  Support: ₹840  Resistance: ₹945; ₹990; ₹1,060  Seamec shares has witnessed a sharp 49 per cent crash from it's all-time high of ₹1,670 hit in August 2024. At present, the stock is seen seeking support around its super trend line support on the monthly scale at ₹840 levels. The stock has consistently been trading above this indicator since June 2024. CLICK HERE FOR THE CHART  With key momentum oscillators in a fairly oversold zone, the stock may attempt to recover some lost ground from here on. The stock can be a counter-bet as long as this support is held, for a potential pullback towards ₹1,100 levels. Intermediate resistance can be expected around ₹945, ₹990 and ₹1,060 levels.