Bharat Electronics, HAL, Mazagon Dock: How to trade these 3 buzzing defence stocks

Indian benchmark indices posted big cuts on Monday on the back of escalating geopolitical tensions in the Middle East, triggering a boil in crude oil prices as investors took flocked towards safe heavens like gold and the US dollar. The BSE Sensex crashed 1,048.34 points, or 1.29 per cent, to close at 80,238.85, while NSE's Nifty50 plunged 312.95 points, or 1.24 per cent, to end at 24,865.70 for the day.

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

Hindustan Aeronautics | Caution

HAL is positioned below its 20-day and 50-day DEMA at present, reflecting short-term trend weakness. Key momentum indicators are tilted towards the bearish side, indicating that downside pressure continues to dominate the daily chart. The overall price pattern is forming lower highs, which highlights the absence of strong accumulation at current levels. Considering this technical structure, a prudent stance is recommended. Traders should prefer to remain on the sidelines for now. A strong and convincing daily close above Rs 4,050 would be necessary to indicate a possible trend reversal and revival of bullish momentum. Sustaining above Rs 4,050 could trigger fresh buying interest, while until then, the overall outlook stays neutral to slightly negative.
 

Bharat Electronics | Buy | Target Price: Rs 490 | Stop Loss: Rs 430

Bharat Electronics Ltd is trading above its 20-day and 50-day DEMA, which indicates short-term trend strength and continued buying interest. The RSI is holding above the 50 level, suggesting positive momentum and improving bullish sentiment. The DMI indicator is showing strength, reflecting upward directional movement on the daily chart. The overall technical structure remains constructive as long as the stock sustains above key support levels. Traders may consider buying in the Rs 455–450 zone, where favorable risk-reward is visible. A strict stop loss should be maintained at Rs 430 to manage downside risk. On the higher side, the stock has the potential to move towards the Rs 490 level if momentum continues and broader market conditions remain supportive.
 

Mazagon Dock Shipbuilders | Caution

Mazagon Dock is trading below its 20-day and 50-day DEMA, indicating short-term weakness in trend structure. Momentum indicators are also showing bearish signals, suggesting that selling pressure is still present on the daily chart. The price structure reflects lower highs and a lack of strong buying interest at current levels. Given this setup, a cautious approach is advisable. Traders may adopt a wait-and-watch strategy for now. A decisive daily closing above Rs 2,350 is required to signal a potential reversal and fresh upside momentum. Only above Rs 2,350 would the stock show signs of strength and open the door for a renewed bullish move. Until then, the bias remains neutral to weak.