In a landmark show of tactical prowess and technological supremacy, India’s successful defence against a series of drone attacks in the recent conflict with Pakistan has thrust the nation’s defence capabilities into the global spotlight. This unprecedented success wasn’t just a military triumph but also a pivotal moment for India’s rapidly growing defence manufacturing sector. Central to this evolution has been the Indian government’s aggressive push under the Make in India initiative, aimed at transforming the country from a major importer into a formidable exporter of defence equipment.
Indian defence stocks, long viewed as niche plays, are now centre stage. Amid broader market volatility, these stocks are showing remarkable relative strength. While global markets grapple with inflation, geopolitics, and central bank policies, India’s defence sector offers a story of resilience and growth.
Amidst this backdrop, three defence companies – Garden Reach Shipbuilders & Engineers (GRSE), Paras Defence and Space Technologies, and Idea Forge Technology Ltd have recently exhibited fresh breakouts on technical charts. These patterns signal renewed bullish momentum and present compelling opportunities for traders hunting for strong trends with favourable risk-reward setups.
1. Garden Reach Shipbuilders & Engineers Ltd (GRSE)
GRSE is India’s leading shipbuilding company under the Ministry of Defence. Headquartered in Kolkata, it has played a crucial role in building a modern naval fleet for the Indian Navy. GRSE specialises in designing and constructing advanced warships, patrol vessels, and support ships. With over six decades of legacy, the company has emerged as a key strategic asset for India’s maritime security.
GRSE Daily Chart
After breaking out above the crucial resistance level ₹2,833, GRSE stock surged to ₹3,532 in early June. The stock then smartly retested the breakout zone, correcting to a low of ₹2,888, a textbook technical move before resuming its uptrend to post a new all-time high at ₹3,538 today. This confirmation of breakout strength signifies that bulls are firmly in control.
The price action suggests a strong bullish trend for traders. As long as the stock holds above ₹2,800, dips are likely to be seen as buying opportunities. With the stock now in uncharted territory, it potentially offers an asymmetric risk-reward for trend-followers.
2. Paras Defence and Space Technologies Ltd
Paras Defence is a niche defence and space engineering firm that provides high-precision optics, defence electronics, and heavy engineering components. It is one of the few Indian companies involved in developing critical technologies for satellites, missiles, and other strategic systems. The firm has also expanded its presence in the drone and anti-drone systems segment, making it highly relevant in the current geopolitical context.
Paras Defence Weekly Chart
Paras Defence’s price action is a classic case of a range shift strategy. After consolidating for weeks, the stock broke out and retested the upper range near ₹1,600, before resuming its rally. This type of behaviour is often seen when market participants accumulate positions before a major directional move.
The recent bounce from ₹1,540 and the recovery toward ₹1,700 suggest that the pullback was an opportunity, and bulls are buying on every dip. The structure signals trend continuation, with momentum building at a key inflexion point. The trend remains firmly upward as long as the stock remains above the ₹1,500–1,540 range.
3. Idea Forge Technology Ltd
Idea Forge is a pioneer in India’s unmanned aerial vehicle (UAV) sector. The company designs and manufactures high-performance drones for the Indian armed forces, police, and government agencies. With an increasing focus on Indigenous drone capabilities, especially following the recent conflict, Idea Forge stands out as a technology leader in a critical strategic domain.
Idea Forge Daily Chart
Idea Forge has broken out of a falling channel pattern on the daily chart, a strong indicator of a bullish reversal. The emergence of a higher high–higher low formation, in line with Dow Theory, confirms a new bullish trend cycle.
What’s more significant is that the breakout has occurred with strong volume support, often a reliable indicator of institutional buying, indicating a fresh trend setup unfolding. The stock is positioned well for further upside, with any correction likely to find support from active buyers looking for long-term exposure to the drone space.
Ready for the Drone move on the Charts?
India’s defence sector is no longer just a strategic priority; it’s an investment theme in its own right. With the government doubling down on self-reliance, increasing defence exports, and fostering private participation, the sector offers structural tailwinds that could extend well beyond current geopolitical events.
For traders and investors, Garden Reach Paras Defence, and Idea Forge are more than just technical breakouts; they are early entries into what could be a long-term megatrend. While risk management remains paramount, especially after strong rallies, the underlying fundamentals and technical structures suggest that dips in these names could continue to be potential buying opportunities.
Disclaimer
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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