Shares of the stock split bound Mazagon Dock Shipbuilders Ltd. are poised for further downside in 2025 as the defence giant’s stock trades in the so-called ‘bearish territory’ after a 150% rally early this year.
The domestic warship manufacturer’s stock trades ex-date on Thursday for its 1:2 stock split.
The stock currently tests the entry into the bearish zone—a fall of 20% from its 52-week high—but a fall less than what its peers have seen. The counter finds support in the Rs 4,595 to Rs 4,545 level which is also the 2-standard deviation below the 14-day moving average.
However, the temporary momentum in the lower time frame looks negative after the downside switch on Dec. 18. The counter currently trades below the 21-day exponential and 14-day simple moving average.
A momentum change to the upside could trigger the stock to an immediate resistance of Rs 4,850. A breakout of that level could send the stock to the psychologically important Rs 5,000 mark.
The stock has risen 104% during the last 12 months. Shares rose as much as 3.14% during the day to Rs 4,774 apiece on Thursday on the NSE, compared to a 0.53% rise in the benchmark Nifty 50. The relative strength index was at 49.
Two out of the five analysts tracking the company have a ‘buy’ rating on the stock, two suggest a ‘hold’ and one has a ‘sell’, according to Bloomberg data. The average of 12-month analyst price target implies a potential downside of 14%.
