Mazagon Dock Shipbuilders maintained its upward trajectory for the fourth consecutive session on June 20, rising more than 7 percent to end at a record closing high of Rs 1,307 on the National Stock Exchange.
The stock has gained steadily, especially after giving a strong Bullish Flag pattern breakout on June 16. A flag pattern is formed when a stock consolidates in a narrow range after a sharp upmove. Generally, a Bullish Flag pattern breakout indicates a further uptrend and may give a return equal to its flag formation.
Mazagon Dock has been in an uptrend, barring intermittent correction and consolidation, since forming a bottom towards the end of March, respecting the 200-day exponential moving average (Rs 616). The stock has given a 110 percent return from the year's low of Rs 612 on March 27.
The volumes in the counter increased significantly in the last couple of weeks. Experts remain bullish on the stock given the strong chart structure but considering the recent run-up, they advise some profit-booking.
"Mazagon Dock Shipbuilding is seen maintaining its upward momentum after breaking out from a pennant formation," Foram Chheda, CMT, Technical Research Analyst and founder of ChartAnalytics.co.in, said.
Recently, the counter broke out from the pennant formation, with a significant increase in trading volume, indicating continued bullishness.
Hence, Foram advises taking partial profits at around Rs 1,340 and trail the stop-loss level below Rs 1,190. The long-term trend remains positive, so investors can continue to hold their positions, she said.
The stock has been making fresh life highs since the past three days, indicating a strong positive undertone. It has given a Bullish Flag pattern breakout near Rs 1,075 with volume confirmation, Vidnyan Sawant, AVP - Technical Research, GEPL Capital, said.
On the weekly charts, the stock has given a Saucer pattern breakout, which confirms a bullish trend for medium to long term.
Immediate resistance is at Rs 1,455 followed by Rs 1,525. On the flip side, support is at Rs 1,190 and Rs 1,075, he said.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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