India-Pakistan Tensions Ignite Defense Stock Rally; HAL Breakout Likely Says SEBI RA

Indian defense stocks witnessed a sharp rally on Friday, driven by escalating border tensions between India and Pakistan. 

Key players such as Bharat Dynamics Limited (BDL), Bharat Electronics Limited (BEL), and Hindustan Aeronautics Limited (HAL) witnessed intraday gains ranging from 3% to 7%. 

Additionally, companies like Paras Defense, Zen Technologies, and DCX Systems also saw their stock prices rise 5%. 

The Nifty India Defence index rose over 3% during morning trading sessions. 

The rally comes on the heels of Operation Sindoor, India’s decisive military response to recent cross-border provocations.

The reported neutralization of Pakistani air defense systems has further bolstered confidence in India’s defense preparedness, prompting a spike in stock interest.

Reports also indicate that the government has called for a meeting with defense manufacturers next week. 

SEBI-registered advisor Orchid Research is optimistic about Hindustan Aeronautics Limited (HAL).

They note that the stock is exhibiting a constructive technical setup on the daily chart, with a clear flag pattern formation and supportive signals from the Ichimoku Cloud indicator, which suggests sustained upward momentum. 

Should the stock break above the ₹4,580 level, there is potential for it to reach new swing highs in the ₹4,750 – ₹4,800 range, while a stop loss is recommended at ₹4,340 to manage downside risk, Orchid Research suggests.

HAL shares have gained 8% year-to-date (YTD).

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