Garden Reach Shipbuilders, BEML, Dredging Corporation, Mazagon Dock and NALCO were bullish among Public Sector stocks. Indian markets were trading slightly negative after opening positive on Tuesday. The selling pressure at higher levels have dragged the markets down but there are certain stocks that have witnessed strong buying in today's trade. We can expect markets to recover by the afternoon session as the bullish sentiment has returned during the last two trading sessions.

Garden Reach Shipbuilders

The daily chart for Garden Reach Shipbuilders displays a Long-Legged Doji pattern, with the stock opening at Rs 1,449.70, touching a high of Rs 1,579.00, and closing near its open price. This pattern suggests market indecision, as bulls and bears battled but failed to establish a dominant trend. The longer wicks indicate significant intraday volatility, reflecting uncertainty about the stock's direction. If the stock closes above the high of Rs 1,579.00 in the coming sessions, it could signal a bullish breakout. Conversely, a close below Rs 1,438.35 might confirm a bearish continuation.

Fibonacci Retracement Levels

Using the 52-week high of Rs 2,833.80 and the 52-week low of Rs 673.45, the Fibonacci levels for Garden Reach Shipbuilders are as follows:
23.6% Level: Rs 1,245.77
38.2% Level: Rs 1,567.26
50.0% Level: Rs 1,753.63
61.8% Level: Rs 1,940.00
76.4% Level: Rs 2,261.49
Currently, the stock is hovering near the 38.2% retracement level (Rs 1,567.26), which acts as a crucial resistance. A sustained move above this level could push the stock toward the 50% retracement level at Rs 1,753.63. However, failure to hold above Rs 1,567.26 may lead to a decline toward the 23.6% level at Rs 1,245.77.

Support and Resistance Levels

- Immediate Support: Rs 1,438 (near today's low) - Major Support: Rs 1,400 (psychological level) - Immediate Resistance: Rs 1,580 (today's high) - Major Resistance: Rs 1,750 (aligned with the 50% Fibonacci level)
A breakout above Rs 1,580 could lead to momentum-driven buying, pushing the stock toward Rs 1,750. Conversely, if the stock fails to hold Rs 1,438, a deeper correction toward Rs 1,400 is possible.

Actionable Insights

Short-Term Traders:

Consider going long above Rs 1,580, targeting Rs 1,750 with a stop-loss at Rs 1,438.
Short positions could be taken below Rs 1,438, targeting Rs 1,400, with a stop-loss at Rs 1,580.
Long-Term Investors:

Accumulate the stock near Rs 1,400 for potential long-term gains, as the company plays a strategic role in India’s defense shipbuilding sector.
Key Trend to Watch:

A breakout above Rs 1,750 would indicate a strong reversal toward Rs 1,940 (61.8% Fibonacci level), suggesting a recovery in momentum.

BEML Technical Analysis

The daily chart for BEML shows the formation of a Bullish Hammer pattern. The stock opened at Rs 3,960.00, reached a high of Rs 4,118.15, and closed slightly lower near the day’s high. This pattern typically indicates a potential reversal from a bearish to a bullish trend, supported by buyers stepping in near the intraday low of Rs 3,930.05. If the stock sustains above today’s high in the next session, it could confirm a bullish breakout.

Fibonacci Retracement Levels

Using the 52-week high of Rs 5,488.00 and the 52-week low of Rs 2,382.15, the Fibonacci levels for BEML are as follows:
23.6% Level: Rs 3,265.58
38.2% Level: Rs 3,864.73
50.0% Level: Rs 3,935.08
61.8% Level: Rs 4,005.43
76.4% Level: Rs 4,604.58
Currently, the stock is trading near the 61.8% retracement level (Rs 4,005.43). A sustained move above this level could pave the way for a rally toward Rs 4,604.58 (76.4% retracement level). On the downside, failure to hold above Rs 3,864.73 (38.2% level) might signal a deeper correction.

Support and Resistance Levels

- Immediate Support: Rs 3,930 - Major Support: Rs 3,865 - Immediate Resistance: Rs 4,120 - Major Resistance: Rs 4,600
If BEML breaks above Rs 4,120, it could trigger momentum-driven buying, leading the stock to test the Rs 4,600 level. Conversely, sustained trading below Rs 3,930 might signal weakness, with potential downside toward Rs 3,865.

Actionable Insights

Short-Term Traders:

Consider going long above Rs 4,120, targeting Rs 4,600, with a stop-loss at Rs 3,930.
Short positions could be taken below Rs 3,930, targeting Rs 3,865, with a stop-loss at Rs 4,120.
Long-Term Investors:

Accumulate the stock on dips near Rs 3,865, as BEML’s strong position in defense and infrastructure equipment markets provides robust growth potential.
Key Trend to Watch:

A breakout above Rs 4,120 could signal the beginning of a bullish rally, while failure to hold Rs 3,930 may lead to further corrections.

Mazagon Dock Shipbuilders Technical Levels

The daily chart for Mazagon Dock Shipbuilders reveals the formation of a Bullish Marubozu pattern, with the stock opening at Rs 4,185.00 and closing near the high at Rs 4,445.65. This indicates strong buying interest throughout the session, as there was minimal selling pressure. Such a pattern suggests continued bullish momentum, especially if the stock breaks above Rs 4,445.65 in the next trading session.

Fibonacci Retracement Levels

Using the 52-week high of Rs 5,860.00 and the 52-week low of Rs 1,795.40, the Fibonacci levels for Mazagon Dock Shipbuilders are as follows:
23.6% Level: Rs 2,892.17
38.2% Level: Rs 3,564.54
50.0% Level: Rs 3,827.70
61.8% Level: Rs 4,090.86
76.4% Level: Rs 4,563.23
The stock is currently trading near the 76.4% retracement level (Rs 4,563.23), a crucial zone for a potential breakout toward its 52-week high of Rs 5,860. Failure to sustain above the 61.8% retracement level (Rs 4,090.86) might indicate a short-term retracement.

Support and Resistance Levels

- Immediate Support: Rs 4,160 - Major Support: Rs 4,090 - Immediate Resistance: Rs 4,445 - Major Resistance: Rs 4,800
If Mazagon Dock breaks above Rs 4,445, it could test Rs 4,800, a significant psychological and technical level. However, a dip below Rs 4,160 might lead to further downside, testing the Rs 4,090 level as major support.

Actionable Insights

Short-Term Traders:

Go long above Rs 4,445, targeting Rs 4,800, with a stop-loss at Rs 4,160.
Short positions could be initiated below Rs 4,160, targeting Rs 4,090, with a stop-loss at Rs 4,445.
Long-Term Investors:

Accumulate the stock near Rs 4,090, as Mazagon Dock's strong fundamentals in defense and shipbuilding, coupled with robust government support, indicate long-term growth potential.
Key Trend to Watch:

A sustained breakout above Rs 4,445 could signal the beginning of a bullish trend, potentially testing Rs 5,000 or higher in the medium term. Conversely, failure to hold Rs 4,160 might lead to a short-term correction.
Mazagon Dock Shipbuilders is positioned at a key technical level, with potential for both short-term trading opportunities and long-term investment. Its role in defense shipbuilding and strategic importance adds to its growth narrative.

NALCO Price Action and Technical Levels

The daily chart for NALCO suggests the formation of a Spinning Top candlestick pattern. The stock opened at Rs 252.88, reached a high of Rs 257.19, and closed near the opening price. This indicates market indecision, with neither bulls nor bears gaining dominance during the session. Such a pattern often appears near critical levels and suggests that the next few sessions could define the direction. If the stock breaks above Rs 257.19, it may trigger a bullish continuation, while a close below Rs 249.94 could signal short-term weakness.

Fibonacci Retracement Levels

Using the 52-week high of Rs 262.99 and the 52-week low of Rs 91.10, the Fibonacci retracement levels for NALCO are as follows:
23.6% Level: Rs 159.44
38.2% Level: Rs 190.91
50.0% Level: Rs 177.04
61.8% Level: Rs 230.50
76.4% Level: Rs 247.39
NALCO is currently trading near its 76.4% retracement level (Rs 247.39), which acts as a significant support zone. A sustained move above Rs 257.19 (52-week high) could lead to a breakout, targeting higher levels. Conversely, if the stock closes below Rs 247.39, it may retrace toward the 61.8% level (Rs 230.50).

Support and Resistance Levels

- Immediate Support: Rs 249.90 - Major Support: Rs 247.00 - Immediate Resistance: Rs 257.20 - Major Resistance: Rs 263.00 (52-week high)
The stock’s proximity to its 52-week high suggests that it is testing a critical resistance zone. If it clears Rs 257.20, it could lead to momentum-driven buying, pushing the stock toward Rs 270. However, a breakdown below Rs 249.90 could lead to a retracement toward Rs 247.00.

Actionable Insights

Short-Term Traders:

Go long above Rs 257.20, targeting Rs 263.00 and Rs 270, with a stop-loss at Rs 249.90.
Consider short positions below Rs 249.90, targeting Rs 247.00, with a stop-loss at Rs 257.20.
Long-Term Investors:

Accumulate the stock near Rs 247.00, as NALCO’s low P/E ratio of 15.12 and high dividend yield of 3.13% make it a strong candidate for value investment. Its strategic role in aluminum production further strengthens its long-term potential.
Key Trend to Watch:

A breakout above Rs 263.00 could trigger a new upward trend, supported by strong fundamentals and positive global aluminum demand. Conversely, a failure to hold above Rs 247.00 may indicate the need for further consolidation.