Bharat Electronics, HAL, Garden Reach: How to trade these 3 buzzing defence stocks

Indian benchmark indices kicked-off the week on a cautious note on the back of mixed global cue. Traders are looking at the key global economic data and Q3 earnings for India Inc for short-term triggers. BSE Sensex dropped 322.39 points, or 0.38 per cent, to settle at 85,439.62, while NSE's Nifty50 declined 78.25 points, or 0.30 per cent, to close at 26,250.30 for the day.
 

Select buzzing defence stocks including Garden Reach Shipbuilders & Engineers Ltd, Hindustan Aeronautics Ltd and Bharat Electronics Ltd 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 has to say on them ahead of Tuesday's trading session:
 

Bharat Electronics | Buy | Target Price: Rs 430 | Stop Loss: Rs 400

BEL is showing a positive technical setup with a clear breakout above the ₹410 zone. Momentum indicators are supportive, as the RSI is holding above 60, suggesting strong buying strength. The MACD has generated a bullish crossover near the zero line, indicating the possibility of further upside. Additionally, the stock has broken out of a falling trendline, which reinforces the bullish bias. Buying is preferred in the Rs 414-410 range with a stop loss at Rs 400 and an upside target of Rs 430.
 

Hindustan Aeronautics | Buy | Target Price: Rs 4,850 | Stop Loss: Rs 4,300

HAL has also displayed signs of trend reversal after breaking above a falling trendline. The RSI is placed around the 60 mark, reflecting improving momentum, while the MACD has formed a bullish crossover near the zero line, supporting the positive outlook. A buy-on-dips approach is advised in the Rs 4,530–4,500 zone, with a stop loss at Rs 4,300 and a target of Rs 4,850.
 

Garden Reach Shipbuilders & Engineers | Buy | Target Price: Rs 2,650 | Stop Loss: Rs 2,400

GRSE is exhibiting short-term strength after breaking above the highs of the last three trading sessions. The RSI has moved above the 55 level, indicating rising momentum, and the RSI is trading above its 9-period EMA, which supports near-term bullishness. The MACD has also turned positive with a bullish crossover. Buying is recommended between Rs 2,510-2,500, keeping a stop loss at Rs 2,400 and an upside target of Rs 2,650.