3 Defence Stocks with Fresh Breakout on Charts
India's defence sector continues to gain momentum, not only fundamentally but also technically. With increased government focus on indigenisation and defence exports, several stocks in the sector are witnessing strong price action.
Here are three defence-related stocks that have shown a fresh breakout on the charts, indicating potential for near-to-medium term upside.
1. Bharat Electronics Ltd (BEL)
Technical Signal: Breakout above previous resistance at Rs 240 with strong volume
Outlook: BEL has seen a clean breakout on the daily and weekly charts, supported by rising volumes and momentum indicators such as RSI above 70. This signals continued bullish strength, possibly targeting Rs 260–275 in the near term.
2. Hindustan Aeronautics Ltd (HAL)
Technical Signal: Ascending triangle breakout near Rs 4,300 level
Outlook: HAL has broken out of a long consolidation phase, backed by institutional buying and increased delivery volumes. The next resistance is expected near Rs 4,600, with support forming near Rs 4,150.
3. Bharat Dynamics Ltd (BDL)
Technical Signal: Cup-and-handle breakout on daily charts
Outlook: BDL's breakout confirms bullish sentiment as it moved above the Rs 1,530 mark. The formation suggests potential upside towards Rs 1,650+, with momentum confirmed by MACD crossover and increasing delivery-based volumes.
What’s Fueling the Rally in Defence Stocks?
Increased Government Defence Budget
Capital outlay and policy push for Make in India are creating a solid demand base for domestic manufacturers.
Export Opportunities Rising
Indian defence firms are getting global orders, improving revenue visibility and investor confidence.
Strong Technical Setup
Most defence stocks are trading above key moving averages (50DMA, 100DMA), indicating a strong bullish trend.
FAQs
Q1. What is a stock breakout?
A breakout occurs when a stock moves above a defined resistance level with higher-than-average volume, often signaling the start of a new uptrend.
Q2. Why are defence stocks gaining attention in 2025?
Increased government spending, defence exports, and geopolitical dynamics have made the sector attractive both fundamentally and technically.
Q3. Are these breakouts sustainable?
Technical breakouts backed by strong volumes and fundamentals have a higher probability of sustaining, though stop-loss strategies should be used.
Q4. What is the risk in buying post-breakout stocks?
Buying after a breakout carries the risk of a pullback. Investors should watch for confirmation patterns and use proper risk management.
Q5. Can retail investors consider these defence stocks?
Yes, but they should consider investment horizon, risk appetite, and conduct technical/fundamental due diligence before investing.
Published on: June 24, 2025
Uploaded by: PAVAN
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