Breakout Stocks: How to trade Mazagon Dock, Bharat Dynamics & Bharat Electronics that hit fresh 52-week high?

Stocks that hit fresh 52-week high include names like Mazagon Dock Shipbuilders rose more than 10%, Bharat Dynamics rose nearly 2% and Bharat Electronics closed nearly 4% higher on Friday.

We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:

Analyst: Harshita Darak, Technical Research Analyst at Bonanza.

BEL (Bharat Electronics Ltd) opened strong, closed near the day’s high with a gain of 3.85%, forming a bullish candle on the daily chart.

The stock market is trading above all major EMAs, reflecting strong bullish momentum. RSI stands at 80.45, firmly in the overbought zone, hinting at stretched conditions.

From the April 7th bottom, BEL has surged over 44% in just 39 sessions, indicating a robust uptrend, but also raising the probability of a near-term pause or pullback. Despite overbought conditions, the broader structure remains bullish.

A "buy on dips" approach is advisable, with key support seen near ₹320–₹330 levels.

BDL opened firm and closed at ₹1,842 with a gain of 1.97%, but formed a shooting star candlestick pattern, indicating potential exhaustion at higher levels.

The stock recently witnessed a breakout from a well-formed rounding bottom pattern, supported by strong volumes, reflecting long-term bullish intent.

It continues to trade above all key EMAs, confirming a strong uptrend. RSI is elevated at 77.79, placing it in the overbought zone and suggesting the rally may be stretched.

With a sharp 113% rally since April 7th, a short-term pause is possible. The overall view remains bullish; a buy on dips near Rs 1,700–1,750 is recommended.

Mazagon Dock witnessed a strong session, closing at Rs 3,522.40 with a notable gain of 10.68%, and formed a bullish candlestick pattern on the daily chart.
The stock has broken out of a classic rounding bottom formation with healthy volume, signaling strength in the ongoing uptrend.
It remains comfortably above all major EMAs, reinforcing the bullish bias. However, with the RSI hovering at 75.04 in the overbought zone, there may be limited upside in the immediate term, hinting at a possible short-term pullback or consolidation.

Overall trend remains positive; accumulating on dips around the Rs 3,200–3,300 zone would be a favourable strategy.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)