There are certain moments in the market when an entire sector decides to make its presence felt and last week was one such time for defence stocks.
The Nifty India Defence Index gained a solid 7% to reclaim the 8,000 mark, putting the spotlight back on the sector. What stood out was not just the percentage gain but the fact that all the constituents closed in green, a sign of strong breadth. The advance-decline ratio left little room for doubt and the defence flavour is back on the table for investors.
Last we wrote about accumulation in this space, with names like Mazagon Dock Shipbuilders and BEML already showing leadership. Both rewarded investors last week, rising 9.51% and 8.68% respectively. But the story doesn’t end there.
The bullish momentum is now broadening, and three more names have started flashing fresh signals on the charts. They are Apollo Micro Systems, Astra Microwave Products, and Data Patterns.
1. Apollo Micro Systems Ltd
For a long time, Apollo Micro Systems seemed stuck in a tight zone, trading sideways near the Rs. 155 mark. Investors who held on through that dull phase can finally breathe easy.
On the 1% X 3 Daily Point & Figure chart, the stock has broken free from the consolidation band. The series of Double Top Bullish patterns emerging as an indication that buyers are charging the trend.
The stock has now entered uncharted territory, which often excites traders because there is no historical resistance to cap the upside. Based on the breakout structure, the trend is bullish as long as the stock manages to hold above Rs. 270. Beyond that, the possibilities remain wide open.
2. Astra Microwave Products Ltd
Every good rally has its foundation, and Astra Microwave has been quietly laying its base for months.
From June to August 2025, the stock oscillated between Rs. 950-1,050, building a rounding bottom formation. Interestingly, this base was created around the 50DEMA and 200DEMA, which is often seen as the demand zone where smart money enters.
This patient accumulation finally paid off with a breakout on the daily chart. A base breakout is usually a strong technical signal, and here it suggests that the stock is ready to resume its upward journey. The next logical milestone is the previous peak at Rs. 1,193. If that is crossed convincingly, the stock could find itself on a fresh path of discovery.
What is heartening is the behaviour of the stock during its consolidation phase, as it never gave away the crucial 200DEMA. That base shows there were enough buyers willing to defend the lower levels.
3. Data Patterns (India) Ltd
Data Patterns tells the classic tale of a tug of war between bulls and bears. The bears repeatedly tried to push the stock below the 200DEMA, hoping to trigger a deeper fall. But time and again, the bulls managed to absorb the selling. This cat-and-mouse game finally tilted in favour of the bulls, as the stock not only defended the 200DEMA but also managed to close above the 50DEMA recently.
Adding further conviction is the symmetrical triangle breakout on the upside. This breakout is coming after a correction from Rs. 3,259 down to Rs. 2,351, a sizeable fall where weak hands were shaken out. With the triangle now resolved on the bullish side, the stock is signalling a potential reversal of the earlier downtrend.
It’s as if the bears laid a trap for the bulls, but instead ended up getting trapped themselves.
The renewed energy
Defence as a theme is not new on Dalal Street, but the sector is now finding renewed energy. Government orders, rising private participation, and the larger geopolitical environment are all tailwinds that keep fuelling investor interest. More importantly, the price charts of these companies are beginning to align with the fundamental story.
From Mazagon Dock and BEML last week to Apollo Micro, Astra Microwave, and Data Patterns now, the sector is not showing isolated sparks, but a collective surge. That breadth often carries more weight than individual rallies.
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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