The benchmarks will aim to take the positive baton from last week in a fresh week ahead as well.
Our call of the week suggests Nifty’s all-time-high at 26277.35 should reach sooner than later.
Investor sentiment shall remain upbeat after the National Democratic Alliance (NDA) landslide victory and returning to power in Bihar.
The 2-biggest Headwinds:
1) FIIs persistent selling. This November month, FIIs have already sold to the tune of Rs. 13653 Cr.
2) Doubt on next Fed rate cut
Long Story Short: A bullish celebration could unfold as the NDA’s victory in the Bihar elections reinforces political stability and lifts overall market sentiment.
Simply put, buying opportunities emerge at Dalal Street amidst ‘Signs of Bears Exhaustion’ and also on backdrop of ‘Overextension of Pessimism’.
Keep Your Nifty all-time high cap ready! Yipee!!
The Nifty options data suggests Nifty is likely to be in a trading range of 25000-27000 zone. Maximum Call OI is at 26000 followed by 27000 strike prices. 26000 mark is now Nifty’s major resistance zone on closing basis. Maximum Put open interest stands at 25000 levels followed by 26000 levels. Call writing was seen at 25600 and then at 25500 strike price, while there was meaningful Put writing at 25200 and then at 25300 strike prices.
Price Forecast:
Nifty CMP (25910)
Support : 25500/24551
RESISTANCE: 26277/26600
RANGE: 25677-26300
200 DMA: 24440
Nifty PCR: 0.97
BIAS: Positive
Bank Nifty CMP (58518)
Support: 57200/55500
RESISTANCE: 59650/61000
RANGE: 57500-59500
200 DMA 54240
BankNifty PCR: 0.92
BIAS: Positive
Preferred trade for the week:
Nifty (25910): Buy on dips between 25822-25835 zone. Targets at 26150/26277. Aggressive targets at 26500 zone. Stop at 25500.
TOP SECTORS
Bullish Sectors: BANKS, METALS, IT
Bearish Sector: MEDIA, FMCG
STOCKS IN FOCUS:
BULLISH VIEW: ASHOKLEY, SBIN, BDL, AMBER, MUTHOOTFIN, FEDERALBNK, MCX, BSE, SOLARINDS
BEARISH VIEW: BAJAJ AUTO, SRF, ULTRACEMCO, MPHASIS, HDFCAMC, SHREECEM
Garden Reach Shipbuilders & Engineers (GRSE)
Company Overview:
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is an Indian defence-shipbuilding and engineering firm under the administrative control of the Ministry of Defence.
Headquartered in Kolkata, West Bengal, the company designs, builds, repairs and overhauls warships, offshore platforms, and specialised marine vessels, as well as diversified engineering-products (portable steel bridges, deck-machinery, pumps). GRSE claims the distinction of being the first Indian shipyard to export warships and to deliver 100+ warships to the Indian Navy & Indian Coast Guard.
GRSE BUY
CMP 2897
Target Price 3100/3535
Stop 2593
52 Week H/L 3535/1180
P/E 53.81
EPS (TTM) 53.80
Promoters/FIIs/DIIs//Public 74.50/3.26%/1.99%/20.25%
Book Value 200
Market Cap (INR) 33,187 Cr.
Company Overview:
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is an Indian defence-shipbuilding and engineering firm under the administrative control of the Ministry of Defence.
Headquartered in Kolkata, West Bengal, the company designs, builds, repairs and overhauls warships, offshore platforms, and specialised marine vessels, as well as diversified engineering-products (portable steel bridges, deck-machinery, pumps). GRSE claims the distinction of being the first Indian shipyard to export warships and to deliver 100+ warships to the Indian Navy & Indian Coast Guard.
Key Strengths & Competitive Advantages
1) Defence domain + strategic importance – GRSE operates in the defence shipbuilding segment, which is often state-supported, high entry barrier, and aligned with “Make in India” themes. This gives GRSE leverage in securing orders and preferential access.
2) Strong order book / backlog & long-term contracts – With multiple ship-contracts, export potential, and repair/refit capabilities, GRSE enjoys visibility of future revenue streams. Order Book: GRSE’s order book stands at INR 21,700 crores as of June 30, 2025, covering 10 projects and 40 marine platforms.
3) Indigenisation & cost control – The push towards higher indigenous content for its vessels and engineering items reduces reliance on global suppliers, supports margins, and enhances strategic value for Indian defence procurement.
4) Diversified engineering portfolio – Beyond ship‐building, GRSE’s engineering division (bridges, pumps, machinery) provides additional revenue streams and helps mitigate pure ship-building cycle risk.
5) Track record & reputation – Delivering a large number of warships, export contracts and government visibility boosts credibility and may ease financing, approvals and partnerships.
Risks & Challenges
1) Long project lead-times & execution risk – Ship-building is capital‐intensive, with long gestation, risk of delays, cost overruns, and currency/material inflation exposure.
2) Working capital and margin pressure – Large contract volumes can tie up working capital; higher subcontracting or material cost escalation could squeeze margins. For example, in Q2 FY26 subcontracting charges saw steep YoY growth.
3) Dependence on government/PSU orders & policy risk – A large portion of business comes from defence/government clients; any change in policy, budget cuts, or delays in order awards could impact GRSE.
Key Financial Results (Q2 FY26)
GRSE delivered strong top-line and bottom-line growth in Q2 FY26, reflecting healthy execution, order conversion, and favourable macro tailwinds in defence/ship‐building.
Revenue from operations: ~ ₹1,677.38 crore, up ~45.48 % YoY.
Total income (including other income): ~ ₹1,746 crore, up ~42 % YoY.
Profit after tax (PAT): ~ ₹153.78 crore, up ~57.28 % YoY versus ~₹97.77 crore in Q2 FY25.
Profit before tax (PBT): ~ ₹209.36 crore vs ~₹130.53 crore previous year, ~60.39 % growth.
EBITDA: ~ ₹225 crore in Q2 FY26 vs ~₹144 crore in Q2 FY25, ~56 % growth.
Margin: Operating margin improved; e.g., an analysis reported OPM of ~9.31% in Q2 FY26.
Technical Outlook: The stock has been consolidating for last 4-months with immediate support seen at 2550-2675 area. Confirmation of strength above 3100. Above 3100, GRSE will aim its all-time-high at 3535 mark. The stock is currently trading well above its 200-DMA at 3296 levels.
Preferred trade:
Buy GRSE (CMP 2897) at CMP, targeting 3033/3100 and then aggressive targets at psychological 3550 mark. Stop at 2483. Holding Period: 12-15 Months.
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