Stocks to Watch: Bharat Dynamics, Finolex Cables, and Cochin Shipyard Shares Hit Record Highs; Should You BUY/SELL/HOLD

On Friday, the domestic market closed flat after reaching record highs as investors opted to book profits at higher levels.

The S&P BSE Sensex hit a record high of 75,636, while the Nifty50 reached an all-time high of 23,026 during intraday trading.

Sector-wise, public sector, capital goods, and telecom stocks saw buying interest, whereas metal, realty, IT, and FMCG stocks experienced selling pressure.

Among the stocks hitting fresh record highs were Bharat Dynamics, which gained over 8%, Finolex Cables, which rose more than 12%, and Cochin Shipyard, which pared gains after hitting fresh record highs on Friday.

Here’s a look at three stocks that either hit a fresh 52-week high, an all-time high, or saw a significant volume or price breakout. We consulted an analyst to get insights on how to approach these stocks for the next trading day, purely for educational purposes:

Analyst: Virat Jagad, Technical Analyst at Bonanza Portfolio

Cochin Shipyard: Buy on Dips

Cochin Shipyard hit a high of ₹2,030 on March 24, before facing selling pressure that pushed it down to around ₹1,910. The stock is finding support near its 21-day EMA, which has been a strong support level.

Recent price movements suggest buyer strength, helping the stock break through a triple bottom formation. A strong bullish candle indicates a continued positive trend, suggesting more upward movement potential. However, since the RSI is in the overbought zone at 84.6, it’s best to wait for a pullback before buying.

Bharat Dynamics: Avoid

Bharat Dynamics showed strong bullishness after breaking out of a consolidation range, indicating buyer dominance. However, strong selling at higher levels has resulted in a higher wick on the candle, signaling momentum exhaustion. The current candle forms a shooting star pattern, which indicates a potential reversal and possible profit booking at the current level. With the RSI close to 90, the stock appears overbought, suggesting a price correction or consolidation period might follow.

Finolex Cables: Buy

Finolex Cables has a strong resistance zone between ₹1,150 and ₹1,180 on its weekly chart. Active buying has driven the stock upward, breaking through a triple bottom formation. A strong bullish candle suggests a continued positive trend.

The stock has taken support from the 21-day and 50-day EMAs, indicating a positive trend. The RSI has also broken out of a falling trend line, confirming the price action. These indicators collectively suggest a favorable outlook for Finolex Cables, with potential to rise to ₹1,600, supported by the ₹1,150 level.