Technical Breakout Stocks: How to trade Garden Reach Shipbuilders, Cochin Shipyard and RVNL on Friday

The Indian market hit a fresh record high on Thursday amid short covering following RBI’s record dividend payout to the government that could lead to better fiscal position and softer bond yields.

The S&P BSE Sensex rose nearly 1,200 points to hit a record high of 75,499 while the Nifty50 closed at 22,967.

“There was enthusiasm in the equity market after the RBI approved a Rs 2.1 lakh crore dividend to the government,” says Neeraj Chadawar, Head – Fundamental and Quantitative Research at Axis Securities.

“This indicates a better fiscal position and softer bond yields going forward. As a result of this positive move, we are seeing some short covering in the market,” he said.

Sectorally, buying was seen in banks, capital goods, auto and consumer durables while marginal selling was seen in healthcare and metal stocks.Stocks that hit a fresh record high include names like Garden Reach Shipbuilders and Engineers Ltd which was up nearly 20%, Cochin Shipyard rose over 16% and RVNL closed with gains of nearly 9% on Thursday.We have collated a list of three stocks that either hit a fresh 52-week high, or an all-time high or saw a volume or a price breakout.We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view.

Here’s what analyst Sanket Thakar (CMT, Founder- Alpha Bot Capital) had to say:

Cochin Shipyard

The stock has entered its all-time high level just a few days after the breakout from its rising channel pattern.

The intraday target has almost been achieved and could retrace a bit back to its near support level of 1,784 in coming days. The overall trend still remains strongly up.

Cochin 23 MayAgencies

Garden Reach Shipbuilders

Garden Reach Shipbuilders broke out of a bullish flag pattern in April 2024 & the pattern is aiming at the target of 1,500, which is expected to reach very soon. After that it may attract some profit booking.

Garden Reach 23 MayAgencies

Rail Vikas Nigam Limited

RVNL is already in its bull run pursuit after a bullish flag pattern breakout in the daily chart. The pattern is aiming at a target of 400 & 440 in the near future.

RVNL 23 MayAgencies

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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