Defence stocks have delivered exceptional returns in 2026, with the Nifty Defence Index surging 32% and reaching fresh lifetime highs. According to reports from Business Standard, this performance stands in stark contrast to broader market weakness, as the NSE Nifty 50 declined 7.5% and the Nifty 500 fell 2.8% as of June 18. Among defence index constituents, 11 out of 22 stocks have gained more than 25%, with MTAR Technologies leading the surge with a remarkable 244% gain. Other notable performers include Paras Defence and Space Technologies, Data Patterns (India), and Astra Microwave Products, which have appreciated between 70-91%.
Muthuselvaraj M, research analyst at Mirae Asset Sharekhan, remains optimistic about defence and defence-related stocks, identifying three potential opportunities. As reported by Business Standard, the analyst believes these three stocks - Paras Defence, Zen Technologies, and Garden Reach Shipbuilders - can potentially rally up to 54% from current levels. The recommendations are based on technical analysis showing uptrend patterns and breakouts from consolidation zones across these defence sector stocks.
According to the analyst's assessment reported by Business Standard, Paras Defence and Space Technologies has demonstrated a strong uptrend, trading in a higher top, higher bottom pattern after breaking out of its consolidation phase between ₹970 and ₹580. The stock closed at ₹1,313 and carries a buy recommendation with targets of ₹1,620-₹2,020. The higher-end target translates to a potential upside of 53.9% from the current closing price. The analyst recommends holding the stock for an upside rally beyond ₹1,620, with key support identified at ₹1,050 and a 'buy on dip' strategy as long as the stock sustains above ₹970 on the weekly chart.
As reported by Business Standard, Zen Technologies has demonstrated a significant upside breakout from its weekly rounding pattern and is consistently trading above all exponential moving averages, indicating a strong and sustained uptrend. The stock closed at ₹1,933 with a buy recommendation and targets of ₹2,270-₹2,550. The upside targets imply a potential upside of around 32% from Thursday's closing price. Weekly momentum indicators including MACD and RSI have confirmed the positive outlook with clear bullish crossovers and robust green histograms, with RSI positioned above 70. The analyst cautions that the trend could reverse if the stock falls below ₹1,630.
According to the analyst's assessment reported by Business Standard, Garden Reach Shipbuilders & Engineers (GRSE) has shown resilience after retracing nearly 61.8% of its Fibonacci level from its recent high of ₹3,339. The stock closed at ₹2,816 with a buy recommendation and targets of ₹3,190-₹3,370. The stock demonstrates strength from its swing low of ₹2,530 on the daily chart, with the ₹2,530 level acting as crucial support. GRSE maintains its strong position, trading above the 'Golden Crossover' of the 200- and 50-day exponential moving averages at ₹2,525 and ₹2,660 respectively. The analyst notes that momentum indicators are signalling positive crosses and upward trends, supporting a continued rally outlook.
