Hindustan Aeronautics, Bharat Forge: Time to look at defence-related stks?

Once the stocks conquer 200-WMA, the upside potential is huge.

Most defence-related stocks were trading in the green on Friday, a day after Prime Minister Narendra Modi said his government's resolve for 'Aatmanirbhar Bharat' is not inward-looking, but aimed at boosting India's capabilities and global peace, and also for helping the world economy become more stable.

The prime minister asserted that the import embargo on a number of defence equipment is not only aimed at curbing imports but also giving a boost to the domestic industry. He said more items will be added to this import embargo list later. READ MORE

Let's take a look at what charts indicate for key defence-related stocks.

Bharat Forge Ltd (BHARATFORG): The counter is struggling at 200-weekly moving average (WMA) positioned around Rs 515 levels, as per the weekly chart. If the stock manages to conquer it decisively, then a rally in the direction of Rs 550 could be expected. At current levels, Moving Average Convergence Divergence (MACD) has managed to cross the zero line on the weekly chart. This shows a strong positive momentum ahead. The support stays at Rs 510 and Rs 495 levels.  CLICK HERE FOR THE CHART
 
Hindustan Aeronautics Ltd (HAL): The recent gap-down has disrupted the upside sentiment as per the daily chart. The massive surge in the volume at the gap-down has restrained many traders from taking risk. Unless the gap-down range of Rs 1,149 to Rs 1,065 does not get filled, it is better to stay aside. The current support is at Rs 962, which is it 50-day moving average (DMA). CLICK HERE FOR THE CHART
 
Bharat Electronics Ltd (BEL): The counter is attempting to cross 200-WMA, but it faces strong selling pressure towards Rs 120 levels. For a breakout to come forth, the resistance of Rs 120 needs to be conquered with huge volumes. Till the level of Rs 105 is defended on the closing basis, the upside bias may see robust push. The volumes have remained subdued. One can expect a surge after the counter manages to breakout, as per the weekly chart. CLICK HERE FOR THE CHART
 
Bharat Dynamics Ltd (BDL):  One can see a gap-up range from Rs 397 to 405 levels, right above the 50-DMA, which is acting as a support level. Till the range is held and the price attempts to cross Rs 440 levels, the upside bias should prevail. The volume is trading at the lower end of the parameter, signalling no major move.  CLICK HERE FOR THE CHART
 
Reliance Naval and Engineering Ltd (RNAVAL): The counter trades 4 per cent higher with a strong positive bias. The overall trend looks positive till Rs 3 is defended on the closing basis. The weekly chart shows a rally towards Rs 5 levels. CLICK HERE FOR THE CHART