Stocks to Buy: Cochin Shipyard, Mazagon Docks among 4 Defence Sector technical picks by Prabhudas Lilladher

Cochin Shipyard, Paras Defence and Space Technologies , Garden Reach Shipbuilders & Engineers , Mazagon Dock Shipbuilders are the four Defence sector stocks that are amongst Defence Sector thematic technical picks by Vaishali Parekh Vice President - Technical Research , Prabhudas Lilladher Pvt. Ltd.

Cochin Shipyards share price trading close to ₹1069 levels is also near 52-week highs seen recently. The target price of ₹1250 for Cochin Shipyard as per Parekh's technical thematic report, with a stop loss at ₹890, indicates almost 17% upside for the stock from here on.

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Cochin Shipyard after a short consolidation phase has given a clear breakout above the rectangular box formation at 940 levels. The bias is getting stronger for Cochin Shipyard stock and has scope for further fresh round of upward move with targets of 1120 and 1270 levels as per technical report. One can maintain the stop loss at 890 levels for Cochin Shipyard recomend Parikh.

Garden Reach Shipbuilders & Engineers share price trading close to ₹888. As per Parekh's technical report Garden Reach Shipbuilders can see more than 21% upside since the target price of for the stock stands at ₹1080. The stop loss for Garden Reach Shipbuilders stands at ₹730. 

Garden Reach Shipbuilders & Engineers after the decent correction that it had witnessed from 920 zone had recently taken support near the 680 zone and indicated a decent pullback moving past the important 200 period MA (moving average) and 50 EMA (exponential moving average) levels to improve the bias anticipating for further rise. The RSI (relative strength indicator) is on the rise indicating strength and much upside potential visible from current levels. 

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Paras Defence and Space Technologies  share price is trading close to 706 levels. The target price for Paras Defence indicated by Parekh at ₹880 with a stop loss at ₹590 indicates more than a 24% upside for the stock.

The Paras Defence share price had corrected quite significantly having taken a near 610 levels forming a double bottom formation on the daily chart. Paras Defence thereafter witnessed a pullback to improve the bias. The RSI for Paras Defence has recovered from the oversold zone to indicate a trend reversal signaling a buy for Paras Defence. With the chart looking attractive, Parekh suggests to buy Paras Defence and accumulate the stock for an upside target of 760 and 880 levels in the coming days keeping the stop loss of 605 level.

Mazagon Dock Shipbuilders  share price is trading close to ₹2196 levels. For the Mazagon Dock , Parekh's target price of ₹2500 with a stop loss at ₹1780 indicates almost 14% upside for Mazagon Dock. 

Mazagon Dock as per Parekh had witnessed a decent slide in the last 2 months. After a short consolidation, Mazagon Dock has indicated a bullish candle formation moving past the important 200 period MA of 1975 levels to improve the bias. Investors can anticipate for further upward move in Mazagon Dock share price in the coming days. The RSI has recovered strongly from the oversold zone for Mazagon Dock indicating a positive trend reversal has signaled a buy. Parekh suggest to buy Mazagon Dock stock for upside targets of 2500 levels keeping the stop loss at around 1780 levels,

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions