Paras Defence shares fall over 2% after 30% rally in 3 sessions. What are charts suggesting?
Shares of Paras Defence and Space Technologies declined as much as 2.5% to their day’s low of Rs 1,376 on the BSE on Monday, snapping
Shares of Paras Defence and Space Technologies declined as much as 2.5% to their day’s low of Rs 1,376 on the BSE on Monday, snapping a 3-day gaining streak where the stock soared an impressive 30%.The stock has emerged as one of the standout performers in the defence space this year, surging a staggering 110% over the last six months and delivering multibagger returns to investors. On Monday, nearly 25 lakh shares worth Rs 345 crore changed hands.What are technicals suggesting?According to Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities, Paras Defence share has given a decisive horizontal trendline breakout on the weekly chart, followed by a strong follow-through rally. The rising ADX on both the daily and weekly timeframes points towards strengthening trend momentum, while the RSI has broken above a downward-sloping trendline, reinforcing the bullish setup. The stock is likely to maintain its positive bias as long as it holds above the Rs 1,300–1,310 support zone, he added.
Also Read | India's defence output hits ₹1.78 lakh crore: Rajnath Singh pushes self-reliance to stay future-readyParas Defence recent newsThe optimism around the defence theme is also reflected in institutional ownership trends. Despite the broader FII selloff, foreign investors have steadily increased their exposure to Paras Defence. FII holdings in the company have risen from 3.46% to 5.06%, even as the stock has delivered a return of 121%.The latest rally comes on the back of a strong push in India's defence manufacturing ecosystem. Earlier this year, the Ministry of Defence announced that indigenous defence production climbed to Rs 1.78 lakh crore in FY26, representing a 15.6% increase from Rs 1.54 lakh crore in the previous financial year. The achievement is even more striking when viewed over a longer period, with production more than doubling from Rs 84,643 crore in FY21, marking growth of110%.Public sector undertakings continued to account for the bulk of production, contributing nearly 76% of the total.
At the same time, the private sector's share rose to 24%, with production touching Rs 42,000 crore in FY26 compared with 22% in FY25."The growth in defence production over the years has tremendously contributed to achieving the record defence exports of Rs 38,424 crore in FY 2025-26. The achievement reflects the growing momentum of the Government's push for self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, spearheaded by Prime Minister Shri Narendra Modi," the ministry said in a statement.The ministry also highlighted on X that India is building one of the world's strongest security architectures, citing the world's largest border guarding force, extensive border fencing, Sudarshan Chakra, stronger counter-terror capabilities, and rapid growth in indigenous defence manufacturing. Also Read | F&O Talk: Mid, smallcaps look strong on charts; Sudeep Shah picks 8 stocks, outlines Infosys, IFCI strategyWhere is defence sector headed?"We have been bullish on the Indian defence sector, as we were clear that our armed forces, consisting of all three services, had to up their spends in order to be technologically up-to-date," said Dinshaw Irani, Chief Executive of Helios Capital India.He noted that the Russia-Ukraine war prompted NATO countries to significantly increase defence spending, further strengthening the long-term outlook for the sector."We were further convinced that India, being a friendly and peace-loving country with a low-cost base, will become a sourcing base for defence products.
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