Shares of state-run Mazagon Dock Shipbuilders Ltd. are trading flat on Tuesday and have cooled off by 25% from their recent highs.

Technical research analyst Manas Jaiswal said that one can hold on to their positions in Mazagon Dock Shipbuilders if they are holding them. He advises maintaining a stop loss of ₹4,000.

“If it drops below this level, the correction might be deeper, potentially reaching the 3,300 level,” Jaiswal said while answering a viewer query on CNBC Awaaz. ₹5,860 is the recent record high made by the stock.

Jaiswal said that strength will only be evident if the stock moves above ₹4,600.

“Currently, corrections are taking place, and both lower tops and lower bottoms are being established,” the analyst said.

In a recent interaction with CNBC-TV18, Mazagon Dock’s Chairman and Managing Director Sanjeev Singhal the company’s order book, which currently stands at ₹40,000 crore, which includes orders for 30 ships, has to be delivered in the next few years.

Mazagon Dock is also expecting orders for three submarines in the near-term, which are likely to be valued at ₹27,000 crore.

The company’s CMD also expressed optimism that new orders will be in place before the current order book is fully liquidated.

Mazagon Dock also informed the exchanged that Singhal will continue to serve as the chairman and managing director of the company for an additional five months.

In terms of technicals, the relative strength index (RSI) of Mazagon Dock stood at 38.9, signaling it’s trading neither in the overbought nor in the oversold zone.

Mazagon Dock shares have a one-year beta of 1.3, indicating very high volatility during the same period.

Mazagon Dock shares trade higher than the 100 day, 150 day, 200 day but lower than the 5 day, 10 day, 20 day, 30 day and 50 day moving averages.

Shares of Mazagon Dock are currently trading 0.0093% lower at ₹4,307.10 on the NSE today. Market cap of the firm stood at ₹86,878 crore.