Cochin Shipyard share price skyrocketed in Wednesday’s trading session, hitting eight-month highs of Rs 1,798. The stock’s 12.5% uptick was triggered by Prime Minister Narendra Modi’s endorsement of Indian defence contractors on the heels of Operation Sindoor. In addition, traders are looking forward to the company’s earnings release on Thursday, which could inject fresh impetus into the stock price.
PM Modi was full of praise for made in India defence equipment, stating that they had been a big part of the “success of Operation Sindoor”. That signals that the Indian Government will likely direct more defense spending towards the acquisition of indigenous weapons. Modi’s government has been pushing the “Make in India” policy, and his latest comments sent defense stocks high, with the Nifty Indian Defence Index up by 8.8% in May.
Elsewhere, Cochin Shipyard share price is also propelled by news of the company’s collaboration with Dubai-based Drydocks World to develop ship repair and offshore fabrication hubs across India. Looking ahead, India aims to produce 3 lakh crore ($36 billion) worth of defence equipment by 2029, and transition into an exporter.
The RSI on Cochin shipyard share price is at 68 on the daily time frame, underlining a strong upward momentum. In addition, the Average Directional Index (ADX) on the shorter 4-hour frame is at 27, pointing to a strong uptrend.
Cochin Shipyard Share Price Prediction
Cochin Shipyard share price pivots at Rs 1,674 and the momentum calls for upside. With the buyers in control, the stock will likely edge higher and meet its first resistance at Rs 1,800. An extended control by the buyers will break above that level, setting the stage for further gains to test Rs 1,858.
On the other hand, moving below Rs 1,674 will shift the momentum to the downside. In that case, the first support will likely be at Rs 1,600. The upside narrative will be invalid if the price breaks below that level. Also, the resulting momentum could take the price lower to test Rs 1,523.
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