HAL, Mazagon Dock, BDL: Top defence stocks to trade— key levels, target prices & stop loss

Indian equity benchmark indices settled marginally higher on Monday after a volatile trading session as the uncertainty around Strait of Hormuz continued to temper risk appetite, despite upbeat India Inc corporate earnings. The BSE Sensex rose 43.27 points, or 0.06 per cent, to close at 78,542.44, while NSE's Nifty50 added 13.15 points, or 0.05 per cent, to end at 24,583.80 for the day.

Select buzzing defence stocks like Bharat Dynamics (BDL), Mazagon Dock Shipbuilders Ltd and Hindustan Aeronautics Ltd (HAL) are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Senior Technical Research Analysts at Anand Rathi Share and Stock Brokers Ltd has to say on them ahead of Tuesday's trading session:

Hindustan Aeronautics | Range-bound | Resistance: Rs 5,000 | Support: Rs 4,800
Hindustan Aeronautics is showing a positive technical setup on the weekly chart and is currently trading above both the 21-week EMA (Rs 4,475) and 50-week EMA (Rs 4,401), indicating a sustained bullish bias. The stock has also moved above the Ichimoku cloud, strengthening the trend structure. DMI remains supportive, with +DI at 31.50 comfortably above -DI at 12.54, while ADX at 25.09 indicates that the uptrend is gaining strength. The key support is placed at Rs 4,800, while Rs 5,000 remains the crucial resistance zone and psychological hurdle. A decisive weekly breakout and close above Rs 5,000 could trigger fresh buying momentum and open the possibility of further upside. The bullish view remains intact as long as HAL sustains above Rs 4,800.

Bharat Dynamics | Positive | Resistance: Rs 1,320 | Support: Rs 1,225
Bharat Dynamics Ltd is consolidating above its rising trendline, indicating that the broader uptrend remains intact. However, it is currently trading around the 21-week EMA and below the 50-week EMA, suggesting some near-term consolidation. The major support is placed at Rs 1,225, which coincides with the rising trendline and is crucial for maintaining the positive structure. On the upside, Rs 1,320 is the immediate resistance zone. A decisive breakout and sustained move above Rs 1,320 could trigger fresh buying momentum and strengthen the bullish setup. As long as BDL holds above Rs 1,225, the overall technical structure remains constructive.

Mazagon Dock Shipbuilders | Rangebound | Resistance: Rs 2,600 | Support: Rs 2,500 
Mazagon Dock has shown a strong rebound from recent lows and is currently trading near the Rs 2,600 resistance zone. The technical setup remains positive, with +DI at 30.23 significantly above -DI at 10.60, while ADX at 29.85 indicates a strong trend. RSI at 67.62 reflects strong momentum, though the stock is approaching the overbought zone. Major support is placed at Rs 2,500, while Rs 2,600 is the key resistance. A decisive breakout and sustained move above Rs 2,600 could trigger further upside, whereas failure to cross this level may lead to some consolidation. The bullish structure remains intact as long as the stock holds above Rs 2,500.