Posted on March 20, 2025, by Niftynews
Garden Reach stock rose by 4.68%, a day after closing 20% higher at Rs 1,641.15 on the Bombay Stock Exchange (BSE). By the end of the day, the stock was trading at Rs 1,718, reflecting continued investor confidence and growth prospects for the company.
Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) have surged an impressive 32% in the last five sessions, marking one of the highest gains for the stock in the past year. The defence sector company, known for building warships, saw a major rally following an announcement about its recent partnership, adding significant momentum to its stock.
Recent Developments Fuel Garden Reach Stock Performance
The rally in Garden Reach stock can be attributed to a positive announcement from the company. The defence firm signed a Memorandum of Understanding (MoU) with the Public Works Department (PWD), Nagaland, for the supply of 8 sets of double lane modular steel bridges in Nagaland. This development led to a significant uptick in investor interest, pushing the stock up by over 6% intraday.
As of today, the market capitalization of Garden Reach Shipbuilders stands at Rs 19,680 crore. On BSE, the stock saw a turnover of Rs 79.93 crore, with 4.65 lakh shares changing hands.
Garden Reach Stock Performance Over Time
In addition to the 32% rise over the last five sessions, the Garden Reach stock has posted a 27.59% gain in the last month and a 9.28% increase in the last three months. Over the past year, the stock has climbed by 128%, and in the past two years, it has increased by 310%. This remarkable growth has attracted the attention of analysts and traders alike.
The stock hit its 52-week low of Rs 744 on March 20, 2024, and reached its 52-week high of Rs 2,834.60 on July 5, 2024.
Technical Analysis: What Do the Charts Say About Garden Reach Stock?
Mandar Bhojane, an equity research analyst at Choice Broking, pointed out that GRSE stock has witnessed a strong breakout from a falling wedge pattern, signaling a potential trend reversal after a prolonged period of consolidation. He suggests that the stock could see a bullish momentum in the short to medium term. Resistance is expected to be between Rs 1,800 and Rs 2,000, while support is at Rs 1,640, with a stop-loss level recommended at Rs 1,550.
Bhojane sees a buying opportunity for GRSE, with a potential upside target of Rs 2,200, depending on market conditions and technical developments.
Jigar S Patel, from Anand Rathi, provided a short-term outlook for Garden Reach stock. He expects support at Rs 1,645 and resistance at Rs 1,748, with a breakout above Rs 1,748 potentially leading the stock toward Rs 1,800. Patel sees a trading range between Rs 1,600 and Rs 1,750 in the near term.
Amol Athawale, VP of technical research at Kotak Securities, highlighted that after a short-term correction, the stock found support near Rs 1,300 and has bounced back sharply. He notes that the stock is currently trading above its 20-day and 50-day Simple Moving Averages (SMAs), signaling a bullish short-term outlook. However, he also warns that the stock is approaching overbought conditions and may experience range-bound movement. Key resistance levels are between Rs 1,800 and Rs 1,850, while support levels are at Rs 1,600 and Rs 1,575. If the stock falls below Rs 1,575, the uptrend could be at risk.
Garden Reach Stock: Key Technical Indicators
As per technical analysis, the Relative Strength Index (RSI) for Garden Reach stock stands at 69.5, suggesting that the stock is neither in the overbought nor oversold zone. This implies that the stock has room for movement in either direction, and it could continue its rally or face short-term consolidation depending on broader market conditions.
What’s Next for Garden Reach Stock?
The outlook for Garden Reach Shipbuilders & Engineers looks promising, with continued strong performance, both fundamentally and technically. While short-term resistance levels may create challenges, the company’s recent partnership and technical breakout signal potential for further upside. As always, traders and investors should monitor support and resistance levels and incorporate risk management strategies to protect their positions.
With a bullish short-term outlook, Garden Reach stock continues to be an intriguing prospect in the defence sector, offering significant potential for investors.
Stay Updated on Garden Reach Stock Performance and Market News
For ongoing updates on Garden Reach stock, market trends, and expert analyses, be sure to subscribe to our newsletter. Stay informed and make better investment decisions with our comprehensive stock insights.
