Defence stocks in focus: Defence stocks were in focus on Tuesday following steep market losses in the previous session. With the Sensex slipping over 500 points and the Nifty closing below 25,000 amid Middle East tensions and a US airstrike on Iran, investors are now looking for sector-specific opportunities. According to Jigar S Patel, Technical Research Analyst at Anand Rathi, selective action in the defence space may offer tactical plays for traders.

HAL (Hindustan Aeronauticals Limited)

Hindustan Aeronautics Ltd (HAL) has surged nearly 70 per cent over the last 2–3 months, and technical indicators suggest the stock is now in an overextended zone. While the fundamentals remain solid, short- to medium-term traders are advised to book profits in the Rs 5,000–5,100 range. Patel notes that a phase of correction or time-based consolidation could follow, creating better entry points down the line.

Mazagon Dock 

Anand Rathi has issued a fresh buy call on Mazagon Dock Shipbuilders Ltd. The stock has recently formed a strong base in the Rs 3,300–3,400 zone, aligning with the S3 Camarilla pivot level on hourly charts. Bullish divergence on momentum indicators strengthens the buy case, with an upside target pegged at Rs 3,600. Traders are advised to buy in the Rs 3,330–3,360 range, with a strict stop-loss at Rs 3,150 on a daily closing basis.

BEL (Bharat Electronics)

Bharat Electronics Ltd (BEL) has also seen a 76 per cent rally over the past few months. While the company’s order pipeline remains robust, the technical setup suggests limited near-term upside. Analysts at Anand Rathi recommend profit-booking in the Rs 410–430 zone and advise waiting for a pullback or consolidation phase before making fresh entries.

Sector outlook

With heightened geopolitical tensions, volatility in defence stocks is likely to persist. Traders should follow strict stop-losses and avoid aggressive bets. The focus should be on disciplined position sizing, particularly in high-beta counters like HAL and BEL.