The Nifty has been consolidating within a broader range. Amid this phase, the Nifty India Defence Index stood out in Q2-2025 with an impressive 38% rally. As of Q3-2025, the same index has slipped nearly 15% from its peak, turning what was once the market’s darling into a succubus.
Yet, even in corrective phases, there are opportunities in defence stocks that may be showing the sign of reversal. Within the defence pack, two stocks, BEML Ltd. and Mazagon Dock Shipbuilders Ltd. are showing technical structures that may be hinting at a short-term bottom.
BEML Ltd.
BEML Ltd. (Bharat Earth Movers Limited), a public sector undertaking in India’s defence and infrastructure ecosystem.
On the charts, the BEML stock price is currently taking support near its 200-Day Exponential Moving Average (DEMA). The price action has been consolidating within a rectangle pattern, a classic consolidation structure above the average.
A breakout above Rs. 4,180 would confirm that the stock has built a base at this support zone, potentially signalling the short-term reversal.
Additionally, the MACD (Moving Average Convergence Divergence) has recently shown a bullish crossover indicating the potential reversal on cards.
While confirmation is still awaited, the confluence of support at the 200DEMA, rectangle consolidation, and a positive MACD setup makes BEML a stock worth a potential opportunity.
Mazagon Dock Shipbuilders Ltd.
Mazagon Dock Shipbuilders Ltd. (MDL) is integral to the nation’s maritime defence, constructing stealth frigates, destroyers, and submarines for the Indian Navy.
After a steep fall from around Rs. 3,775 to a recent low near Rs. 2,600, Mazagon Dock share price appears to be stabilising. The stock price is now hovering close to its 200DEMA, a level that often acts as a medium-term cushion.
On the daily chart, a falling wedge bullish reversal pattern is visible, with a breakout above Rs. 2,800 would confirm the pattern and indicate that the worst of the correction may be behind.
While prices were making lower lows, RSI held steady and began to turn upward, signalling a positive reversal. These are signs of potential trend reversals.
The Larger Message for Traders
The defence theme has been among the strongest narratives on Dalal Street in recent quarters. A breakout beyond the mentioned levels in BEML and Mazagon Dock could potentially mark the beginning of a short-term recovery phase.
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.
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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