COCHINSHIP - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.4

📉 COCHINSHIP is currently in a reversing phase, with weakening momentum indicators and price slipping below short-term averages.

📊 Technical Overview

• Trend Status: Reversing — price has declined from its 52-week high of ₹2,547 and is now below the 50 DMA (₹1,800).
• Moving Averages: Current price (₹1,790) is below 50 DMA and slightly above 200 DMA (₹1,734), indicating a potential breakdown if support fails.
• RSI (47.5): Neutral zone, but trending lower, suggesting weakening momentum.
• MACD (-0.54): Negative crossover confirms short-term bearish sentiment.
• Bollinger Bands: Price near mid-band, indicating consolidation with downside risk.
• Volume: Slightly below average (5.73L vs 5.78L), showing reduced participation.

📌 Entry & Exit Zones

• Support Zone: ₹1,720–₹1,750 — potential entry zone if reversal signals emerge.
• Resistance Zone: ₹1,800–₹1,850 — ideal for exit or partial profit booking.
• Breakout Level: ₹1,900 — crossing this could signal trend recovery.

✅ Positive

• Strong ROCE (20.4%) and ROE (15.8%) reflect efficient capital use.
• Low debt-to-equity ratio (0.09) supports financial stability.
• EPS of ₹32.3 and consistent dividend payout.

⚠️ Limitation

• Price trading below 50 DMA with bearish MACD and weakening RSI.
• High P/E (55.4) and PEG ratio (4.32) suggest overvaluation.
• Quarterly PAT declined from ₹285 Cr to ₹188 Cr.

📰 Company Negative News

• Decline in FII holdings (-0.65%) may reflect cautious foreign sentiment.
• Quarterly profit contraction of 3.88% signals operational pressure.

🌟 Company Positive News

• Positive DII holding change (+0.15%) shows domestic institutional confidence.
• Strong fundamentals with low debt and high return ratios.

🏭 Industry

• Operates in shipbuilding and defense manufacturing, a sector influenced by government contracts and global trade.
• Industry P/E (47.2) is lower than the stock’s, indicating premium valuation.

🧾 Conclusion

• COCHINSHIP is technically weak in the short term with bearish indicators and declining price action.
• Entry near ₹1,720–₹1,750 only if reversal signs strengthen; watch for breakout above ₹1,900.
• Long-term investors may hold for fundamentals and sector potential; short-term traders should remain cautious.