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Below the Quote on Defence stocks in the limelight as French president meets Modi to discuss defence deals by Anand James, Geojit Investments Limited

"Defense stocks have selectively come into the limelight lately, with companies involved in aircraft manufacturing, avionics, radar modules, UAVs, and related technologies gaining strength and attention since last week. Stocks such as HAL, BEL, and Bharat Forge have seen notable traction, with delivery volumes jumping nearly 100% above their key averages over the past two days.

The average RSI of the Nifty Defense Index constituents remains below 50, whereas the RSI levels of HAL, BEL, and Bharat Forge are around 60, indicating relative strength and momentum in these counters. Meanwhile, the shipbuilding segment has shown early signs of a reversal, but it may require broader participation before momentum builds further.

We will continue to ride stocks like HAL, BEL, and Bharat Forge, while keeping a close watch on Mazdock, GRSE, and Cochin Shipyard to capture emerging opportunities as they develop."

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