Beyond HAL & BEL: 2 ‘hidden’ defence stocks that are quietly breaking out – Stock Insights News

From April 2024 to July 2025, India’s defence sector delivered steady growth in indigenisation, strategic readiness, and global trade alignment, thanks to the Atmanirbhar Bharat push. Defence exports hit a record ₹21,083 crore in FY 202324, growing 32.5% yearonyear, with the private sector accounting for nearly 60% of export value. There were also more export authorisations (1,507 vs. 1,414 the prior year), reflecting heightened global demand and improved regulatory efficiency.  

Continued focus on this sector post recent correction in price and time, currently Unimech Aerospace and Apollo Microsystem look like strong candidates to be included in the investable lists.

Unimech Aerospace: Newly listed defence company. Getting ready to deliver better returns

Unimech Aerospace made its debut at ₹1,460 but quickly entered a downward price channel, eventually falling by 44% between January & April (2025), from ₹1,523 to ₹850. But, since hitting the panic bottom, the stock has shown a strong recovery, surging by 64% from April to June 2025. At present, Unimech is displaying multiple bullish chart patterns. Stock is finding support along a rising trendline, & daily candles are holding above the 100 day moving average. RSI remains in the bullish zone, indicating the potential for sustained upward momentum.

Key Signs Indicating Unimech’s Potential Reversal

• Multiple Bullish Support: The stock is finding support at both the rising trendline and a gap support created earlier, suggesting that upward movement is likely.
• 100-Day Moving Average: Trading above its 100DMA indicates that the stock may be poised for a trend reversal.
• Price action with Volume: There has been a noticeable increase in price alongside rising volume, which is typically a bullish indicator. Moreover, when the stock saw a decline earlier, volumes also decreased, indicating that the downward trend may be losing steam.
• Increasing RSI Momentum: The RSI is in the oversold zone but showing bullish divergence, further signalling the possibility of an upward price movement.

Source: Investing.com

Apollo Micro System: Ready for a Potential Up move once again, after retesting the breakout level

Apollo Micro Systems, which has been stuck in a sideways consolidation phase, saw a 45% decline between November 2023 – October 2024, falling from its all-time high of ₹162 to ₹88. But, the stock has recently crossed its previous all-time high, indicating the start of a fresh rally. It faced resistance around ₹220 and it is now trading above the ₹162 level, which is considered a key support point. Stock is also trading above the 100 day moving average, and RSI remains in a healthy zone, indicating strength.

Key Technical Levels Favouring Apollo Micro System’s Reversal

• Ascending triangle pattern: The stock recently gave a breakout from its ascending triangle pattern, and now it is retesting the previous breakout, which is considered the accumulation phase.
• 100 Day SMA: Stock is consistently trading above its 100 SMA, even when the overall market sentiment has been weak, indicating built in strength.
• Volume Surge Confirming the Breakout: Price surge has been accompanied by high volume, which shows a strong market participation. Furthermore, the current low-volume consolidation and modest price decline suggest that the breakout is likely to continue.
• RSI Chart and Price Direction: 14 period RSI has moved above 40 and is forming a bullish divergence, confirming that the stock has strong upward momentum.

Source: Investing.com

Final Take

The Indian defence sector is gradually transforming into a self-reliant, export-centric industry, with the private sector playing a significant role in driving growth. Stocks like Unimech Aerospace & Apollo Micro Systems are displaying solid technical indicators, such as bullish chart patterns, rising RSI momentum, & crucial breakouts, all suggesting that they may experience strong price movement shortly.

Both companies offer a technical setups & could provide investors with attractive entry points. As the defence sector continues to expand, these hidden gems are well positioned to benefit from the sector’s growth trajectory. Keep a close eye on these stocks and add them to your watchlist.

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.

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