COCHINSHIP - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.3

📊 Chart Patterns: COCHINSHIP is trading below both its 50 DMA (1,685 ₹) and 200 DMA (1,714 ₹), showing a clear bearish undertone. Current price (1,548 ₹) is near support levels after a steep correction from highs (2,547 ₹).

📉 Moving Averages: Price < 50 DMA < 200 DMA → bearish alignment. Trend remains weak until price crosses 1,685–1,714 ₹.

📉 RSI: At 21.3, RSI is deeply oversold, suggesting potential for short-term rebound but confirming strong selling pressure.

📉 MACD: Strongly negative (-51.1), confirming bearish crossover and weak momentum.

📊 Bollinger Bands: Price near lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (8,25,379) is higher than 1-week average (6,32,494), showing increased activity, likely driven by selling pressure.

📍 Support & Resistance:

- Strong support: 1,500–1,520 ₹

- Major support: 1,180 ₹ (recent low)

- Immediate resistance: 1,685 ₹ (50 DMA)

- Major resistance: 1,714 ₹ (200 DMA)

🚦 Momentum Signals: Short-term momentum is weak but oversold. Entry zone: 1,500–1,550 ₹ near support. Exit zone: 1,680–1,700 ₹ if resistance is tested. Breakout above 1,714 ₹ would confirm reversal attempt.

🔄 Trend Status: The stock is consolidating with bearish bias, oversold but not yet reversing.

Positive

• Strong ROCE (20.4%) and ROE (15.8%) indicate efficient capital use.
• EPS of 28.8 ₹ supports valuation comfort.
• DII holdings increased (+0.15%), showing domestic institutional support.
• Debt-to-equity ratio of 0.18 indicates low leverage.

Limitation

• Stock trading below both 50 DMA and 200 DMA, showing weak technical strength.
• RSI and MACD both indicate strong bearish momentum.
• PEG ratio (4.19) suggests expensive valuation relative to growth.
• Dividend yield of 0.65% is modest, limiting income support.

Company Negative News

• Quarterly PAT declined sharply (101 Cr. vs 188 Cr., -47.6% variation).
• FII holdings reduced (-0.65%), showing reduced foreign investor confidence.

Company Positive News

• DII holdings increased (+0.15%), reflecting domestic institutional confidence.
• Debt levels remain low, supporting financial stability.

Industry

• Industry PE at 40.8 is lower than COCHINSHIP’s PE (53.8), showing relative overvaluation.
• Shipbuilding and defense sector benefits from government contracts and infrastructure demand but earnings remain cyclical.

Conclusion

⚖️ COCHINSHIP is consolidating with bearish bias, trading below key moving averages and showing oversold RSI. Entry near 1,500–1,550 ₹ could be considered for short-term gains, with exit around 1,680–1,700 ₹. A breakout above 1,714 ₹ would confirm reversal. Fundamentals show moderate strength, but declining profits and overvaluation remain concerns for long-term investors.