Mazagon Dock, HAL, Garden Reach: How to trade these 3 buzzing defence stocks

Indian benchmark indices rebounded in the new week and settled higher on Monday amid the stemmed tensions from the border. However, positive domestic and global cues supported the sentiments at Dalal Street. BSE Sensex soared 1,076.91 points, or 1.36 per cent to settle at 80,289.44, while NSE's Nifty50 surged 289.15 points, or 1.20 per cent to end at 24,328.50 for the day.

 

Select buzzing defence stocks including Hindustan Aeronautics, Garden Reach Shipbuilders & Engineers and Mazagon Dock Shipbuilders 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 and Stock Brokers has to about these stocks ahead of Tuesday's trading session:

 

Hindustan Aeronautics | Book Profits

HAL has already delivered an impressive rally of approximately Rs 1400, translating to a 45 per cent gain within just two months, at the current juncture. However, the stock is now approaching a crucial resistance zone between Rs 4,450 and Rs 4,550. Given the sharp rise and the proximity to resistance, we advise investors to consider booking profits in this zone. It would be prudent to wait for a healthy pullback or consolidation before considering any fresh positions, ensuring better risk-reward opportunities going forward.

 

Garden Reach Shipbuilders & Engineers | Book Profits

GRSE has delivered an outstanding rally, gaining nearly Rs 630 — a strong 53 per cent return over the past two months. As the stock now approaches a key resistance zone between Rs 1,800 and Rs 1,850, we believe it is an opportune time for investors to consider booking profits. Given the sharp upside move and the technical resistance ahead, adopting a cautious approach is advisable. We suggest waiting for a healthy pullback or consolidation before exploring fresh entries to ensure a more favourable risk-reward setup.

 

Mazagon Dock Shipbuilders | Book Profits

Mazagon Dock has surged impressively, gaining nearly Rs 934 — a 48 per cent return in just two months. As the stock approaches a key resistance zone between Rs 2,800 and Rs 2,850, we advise investors to consider locking in profits. After a strong run-up, some consolidation or a pullback is likely. A cautious approach is recommended, with fresh entries better timed after a healthy correction to ensure a stronger risk-reward setup.