Nifty Defence Index Nears Key Resistance As Overbought Signals Emerge: SEBI RA Rajneesh Sharma

The analyst pointed out that RSI divergence and short-bodied candles suggest caution.

The Nifty India Defence Index has rallied to the upper end of its rising channel near the psychological 9,000 mark, with resistance around 9,150 emerging as a key pressure point, according to SEBI-registered analyst Rajneesh Sharma.

At the time of writing, the Nifty India Defence Index was trading at 8,823.10, up 30 points or 0.3% on the day.

Sharma indicated that while momentum remains intact, technical signals suggest caution. 

The RSI, currently near 78.8, reflects an overbought zone, and recent price candles have been short-bodied—factors often associated with rally exhaustion. 

He also noted a continued bearish RSI divergence, where momentum fails to confirm new highs in price action.

Sharma added that if rejection patterns appear near current levels, a pullback toward the 8,400–8,500 zone, aligned with the channel’s midline, could follow. 

Until then, he suggested trend followers remain watchful, emphasizing that caution is warranted without being prematurely bearish.

On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘extremely low’ message volume.

The stock has risen 38.3% so far in 2025.

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