MAZDOCK - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 2.9

📉 Chart Patterns & Trend: MAZDOCK is trading at ₹2,410, below both its 50 DMA (₹2,654) and 200 DMA (₹2,703). This indicates a bearish reversal with weak momentum and declining trendlines. The stock is closer to its recent low of ₹1,918 than its high of ₹3,778, showing vulnerability.

📊 Moving Averages: Price below both short- and long-term averages confirms bearish sentiment. Key support lies near ₹2,350–₹2,400 and ₹1,920, while resistance is around ₹2,650–₹2,700.

📉 RSI: At 23.7, RSI is in the oversold zone, suggesting potential short-term bounce but overall weak momentum.

📉 MACD: Negative MACD (-95.6) signals strong bearish momentum, reinforcing the downtrend.

📉 Bollinger Bands: Price is near the lower band, indicating oversold conditions. A reflex move toward the mid-band (~₹2,500–₹2,550) is possible before facing resistance.

📊 Volume Trends: Current volume (8.03L) is above the weekly average (6.39L), showing strong participation. However, higher volume during declines suggests selling pressure dominates.

🎯 Entry Zone: ₹2,350–₹2,400 (near support)

🚪 Exit Zone: ₹2,650–₹2,700 (near resistance)

Positive

• Strong ROCE (48.8%) and ROE (36.5%) reflect excellent efficiency and profitability.
• Debt-free balance sheet (Debt-to-equity 0.00) ensures financial stability.
• Quarterly PAT improved significantly from ₹419 Cr. to ₹715 Cr. (+26.9%).
• PEG ratio of 0.76 suggests reasonable valuation relative to growth.

Limitation

• Stock trading below both 50 DMA and 200 DMA indicates bearish momentum.
• RSI and MACD both signal strong weakness.
• FII holding decreased (-0.60%), showing reduced foreign investor confidence.
• High volatility with wide 52-week range (₹1,918–₹3,778).

Company Negative News

• Sharp technical weakness despite strong fundamentals.
• Reduced foreign institutional participation adds pressure on valuations.

Company Positive News

• DII holding increased (+0.44%), reflecting domestic institutional support.
• Strong quarterly profit growth highlights operational efficiency.
• Debt-free operations provide long-term resilience.

Industry

• Industry PE at 40.8 is slightly lower than MAZDOCK’s PE (43.6), suggesting fair valuation.
• Defense and shipbuilding sector benefits from government contracts and rising strategic demand.

Conclusion

📌 MAZDOCK is in a bearish reversal, trading below key moving averages with negative MACD and oversold RSI. Entry near ₹2,350–₹2,400 may offer short-term bounce potential, while resistance at ₹2,650–₹2,700 limits upside. Strong fundamentals and profitability support long-term growth, but technical weakness and reduced foreign interest warrant caution in the near term.