Cochin Shipyard share price halted its six-session winning streak, mirroring the broader global equities market sentiment on Monday, following Moody’s downgrade of US credit rating. The stock traded at Rs 2,013 and down by 1.1% at the time of writing, having subsided from nine-month highs of Rs 2,195. Cochin Shipyard share price had been on a strong uptrend in the last week, driven by its earnings and a strong sentiment around Indian defence stocks.
Indian Prime Minister Narendra Modi’s praise of India’s defence manufacturing in the aftermath of the country’s Operation Sindoor boosted investor confidence in multiple defence stocks. The Nifty India Defence Index rose by more than 17% last week, marking the sixth successive weekly gain. The country’s defence manufacturing revenue grew by 16.8% to approximately $15.2 billion in the 2023-24 FY.
For Cochin Shipyard share price, the company’s recent earnings call added an upbeat sentiment to its growth outlook. As per the earnings report released last Wednesday, the company’s revenues grew to Rs 17.6 billion from the Rs 12.6 billion from the corresponding quarter last year, while EPS rose from Rs 9.84 YoY to Rs 10.92. The company’s recommended dividend of Rs 2.25 per equity share of face value of Rs 5. In addition, Cochin Shipyard share price enjoys a positive sentiment generated by, its order book, which has been growing steadily this year.
Cochin Shipyard Share Price Prediction
Cochin Shipyard share price RSI momentum is at 78, indicating overbought conditions, and signals weakness in the near-term below Rs 2,030. The stock will likely find initial support at Rs 1,955. However, an extended control by the sellers could stretch the decline to test the second support at Rs 1,810.
On the other hand, the momentum will shift towards the upside if the stock breaks above Rs 2,057. That will likely see the first resistance encountered at Rs 2,140. The downside narrative will be invalid if the price breaks below that level. In addition, the resulting momentum could extend gains to test Rs 2,200.
The post Cochin Shipyard Share Price Hits Nine-Month Highs, But US Credit News Clouds Gains appeared first in UK on InvestingCube.