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Between April 2024 and June 2025, India’s defence sector saw steady growth driven by an aggressive focus on indigenisation, strategic preparedness and global market integration. This was in line with the Atmanirbhar Bharat vision of self-reliance in defence production, which benefited both public and private players considerably.
On the industry side, defence exports hit an all-time high in FY 2023-24, at ₹21,083 crore ($2.63 billion), indicating a 32.5% growth from the previous year. Almost 60% of the total defence exports from India were from the private sector, illustrating the strong reinforcement of the government’s Make in India and Atmanirbhar Bharat initiatives.
The Indian defence sector is progressing towards a self-sustaining and export-oriented ecosystem. Continued focus on this sector after the recent correction in price and time. Currently, Premier Explosive and Paras Defence look like strong candidates to be included in the investable lists.
Premier Explosive: Bullish Reversal After a 65% Fall
Premier explosive share price has fallen by 65% from its June 2024 peak; from a level of ₹910 to ₹310 by March 2025. However, recent price action shows a possible turnaround as the share price has risen from these lower levels. This can signal fresh buying interest and the beginning of an uptrend.
Key Signs Indicating Premier Explosives Potential Reversal
- Multiple Bullish Pattern Breakout: The stock is breaking out from a falling trendline, and the Cup and handle pattern indicates that the price should move up.
- 200-Day Moving Average: The stock price has broken the 200DMA again after January 2025, which indicates there could be a trend reversal.
- Increased volume: Increased volume of shares every time the price increases can indicate that a trend has changed.
- Increasing RSI Momentum: The Relative Strength Index (RSI) is over 60 and indicates strength, confirming that the share could increase.
Source: Investing.com
Outlook for Premier Explosive
Premier Explosive stock price continues to lag. From its panic bottom in March 2025, it has made more than one bullish chart daily, such as a falling trend line breakout, cup and handle, and many daily candles above the 200-day moving average. In addition, the 14-period RSI shows strength moving into the bullish zone, suggesting Premier Explosive can potentially turnaround.
Paras Defence: Ready for a Potential Up move once again, after crossing the previous ATH
Once Paras Defence share price peaked at ₹1,590 in July 2024, investors saw a price and time correction. The share price went down to create a panic bottom around ₹800. Then stock went up by over 140% from March 2025 to May 2025. The stock has been consolidating very tightly and not trading with volume. Conversely, the stock has bullish chart patterns and signals on the daily chart that indicate the trend can be bullish again.
Key Technical Levels Favouring Paras Defence Reversal
- Crossed Previous All-Time High: The stock was in a time correction but recently crossed its previous all-time high and is possibly entering an upward trend again.
- 200-Day SMA: After the 50% correction, the stock has found support, and prices remain above its 200SMA, which is a classic sign of positive sentiment and a trend reversal.
- Volume Surge Confirming the Breakout: The increase in price and volume mentioned earlier demonstrated strong participation, and the current lower volume in consolidation and modest price decline increases confidence.
- RSI Chart and Price Direction: The 14-period RSI moved above 60, indicating bullish divergence and further momentum for price moves upward.
Source: Investing.com
Prospects of Paras Defence
Paras Defence has been an underperformer, generating negative 50% from July 2024 to March 2025. Now, it has crossed and gone back over its previous all-time high, which is usually taken as a signal for a fresh rally. It has also gone above the 200-day moving average. The 14-period RSI shows strength and is in a bullish zone, and Paras Defence can potentially go on an upswing in the near future.
Final Take
The defence industry in India is slowly but surely evolving into a self-reliant and export-centric industry. The government’s Atmanirbhar Bharat initiative continues to promote momentum towards reducing import reliance and increasing domestic manufacturing. Both Premier Explosives and Paras Defence provide reasonable technical indications for the probability of a bullish trend in the defence space. These stocks have bullish chart signals, increasing strength in the RSI level, and important breakouts, all indicating strength and potentially positive trends.
Disclaimer:
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per SEBI guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives and resources, and only after consulting such independent advisors if necessary.
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