GRSE Stock At Crossroads After 200% Rally: SEBI RA Sudhansu Panda Says ₹2,570 Is Crucial For Direction
Synopsis
The stock has shed nearly 20% in the past month, and charts hint at waning momentum. Retail sentiment remains ‘bearish’ on Stocktwits
Garden Reach Shipbuilders & Engineers (GRSE) witnessed an exceptional rally earlier this year, surging nearly 200% between May 9 and June 23.
However, technical signals suggest the momentum has cooled off, noted SEBI-registered analyst Sudhansu Sekhar Panda of Bluemoon Research.
After reaching the ₹3,500 level, GRSE stock pulled back to ₹2,900, and then staged a rebound to retest ₹3,500. However, the second attempt to break past this resistance was met with strong selling pressure, causing the stock to slide back to ₹2,900. This price action resulted in a classic double top formation on the daily chart, Panda said.
After failing to sustain above the neckline, the stock slipped sharply and is now consolidating just below the ₹2,570 and ₹2,660 range.
At the time of writing, GRSE shares were trading 1.87% lower at 2,566.6.
He sees immediate support near ₹2,570. If this level breaks decisively, the next downside targets could be ₹2,400 and ₹2,200.
On the flip side, a move above ₹2,660 may trigger a short-term bounce toward ₹2,730 - ₹2,800, he added.
Despite the recent decline, GRSE remains a fundamentally strong defence stock, having benefitted from rising order flows and sectoral tailwinds over the last few quarters. The current pullback appears to be profit booking after a steep run-up, the analyst said.
While short-term volatility is expected, long-term investors should keep an eye on the ₹3,500 zone as a potential breakout level if the stock resumes its upward trajectory.
Retail sentiment on Stocktwits remained ‘bearish’, implying further downside. It was ‘neutral’ a month ago.
Year-to-date, the stock has gained nearly 60%. However, profit booking over the past month has led to a 20% decline during that period.
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