
Indian benchmark indices kicked-off the week on a muted note and settled sharply lower on Monday amid the rising tensions in the Middle East with the US also getting involved via airstrikes on Iran. BSE Sensex tanked 511.38 points, or 0.62 per cent, to settle at 81,896.79, while NSE's Nifty50 tumbled 140.50 points, or 0.56 per cent to close at 24,971.90 for the day.
Select buzzing defence stocks including Hindustan Aeronautics Ltd (HAL), Mazagon Dock Shipbuilders Ltd, Bharat Electronics Ltd (BEL) are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares & Stock Brokers has to say about these stocks ahead of Tuesday's trading session:
Hindustan Aeronautics | Book Profits
Hindustan Aeronautics (HAL) has delivered an exceptional rally of nearly 70 per cent over the past 2–3 months, pushing the stock into an overextended zone at the current juncture. While the long-term fundamentals remain strong, the recent sharp up move suggests that the stock may be due for a healthy correction or consolidation in the near term. Technically, the zone of Rs 5,000–5,100 appears to be a prudent level for profit booking, especially for short- to medium-term traders. Investors are advised to adopt a cautious stance and wait for a meaningful pullback before considering fresh entries. A phase of price or time correction could provide a better risk-reward opportunity going forward.
Mazagon Dock Shipbuilders | Buy | Target Price: Rs 3,600 | Stop Loss: Rs 3,150
Recently, Mazagon Dock has formed a strong base in the Rs 3,300–3,400 zone, which also coincides with the S3 Camarilla pivot level on the hourly chart. Additionally, a bullish divergence is visible on momentum indicators, reinforcing the possibility of an upward move. This confluence of technical signals suggests a potential trend reversal or a strong bounce from current levels. Based on this setup, we recommend initiating long positions in the Rs 3,360–3,330 range. The stock may head towards an upside target of 3600 in the near term. To manage risk, a stop-loss should be placed at Rs 3,150 on a daily closing basis. Traders are advised to follow position sizing and maintain discipline around stop levels.
Bharat Electronics | Book Profits
Bharat Electronics (BEL) has surged nearly 76 per cent over the past 2–3 months, placing the stock in an overbought zone at current levels. While its long-term fundamentals and strong order pipeline remain intact, the recent sharp rally suggests the likelihood of a near-term correction or consolidation. From a technical standpoint, the Rs 410–Rs 430 range presents a prudent zone for profit booking, especially for short- to medium-term traders. Investors are advised to adopt a cautious approach and wait for a meaningful retracement before initiating fresh positions. A phase of consolidation or correction could provide a healthier risk-reward opportunity in the coming sessions.