The analyst highlighted strong fundamentals in stocks like HAL and BDL, alongside a breakout trading setup in BDL.

India’s defense sector is benefitting from ongoing border tensions and global conflicts, according to SEBI-registered analyst A&Y Market Research, who pointed to structural growth drivers accelerating defense modernisation. 

The analyst pointed out India’s ₹6+ lakh crore defense budget set for 2025, along with the import ban on 400 defense items under the Atmanirbhar Bharat initiative. 

He also noted the country’s defense export growth reaching ₹16,000 crore in 2024, with a ₹25,000 crore goal by FY26.

The analyst identified Hindustan Aeronautics Ltd (HAL), with a ₹3.3 lakh crore market cap and ₹1.9 lakh crore in orders, and Bharat Dynamics Ltd (BDL), with a ₹72,228 crore market cap and ₹22,700 crore in orders, as key beneficiaries with solid fundamentals and visibility.

Other companies such as BEL, Mazagon Dock, and GRSE were also listed as well-positioned with healthy pipelines.

On the technical front, A&Y Market Research said BDL has broken out from a daily resistance zone between ₹1,755 and ₹1,796 with notable volume, indicating a potential trend shift. 

The analyst noted that after the breakout, buyers appeared exhausted, and a retest of the ₹1,755–₹1,796 zone is expected.

The analyst said that if this retest aligns with a flag-and-pole pattern, it could offer a potential trading opportunity. 

A&Y Market Research cited upside targets at ₹2,356, ₹2,699, and ₹2,925, with the trade setup invalidated if the stock falls below ₹1,500.

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