Defence Index at Make-or-Break Level: A Must-Read If You Hold Positions in the Sector

Defence index has corrected by around 6 per cent, including a 3.75 per cent decline over the past two trading sessions alone, while forming a pattern of lower highs and lower lows.

The Nifty India Defence Index, which tracks the performance of a portfolio of stocks broadly representing the defence theme, had gained as much as 35 per cent from the low on May 9 to the high on June 6, 2025.

However, since the peak on June 6, the index has corrected by around 6 per cent, including a 3.75 per cent decline over the past two trading sessions alone, while forming a pattern of lower highs and lower lows. The index is now at a crucial juncture, as it approaches its short-term 20-day moving average (20-DMA), which is currently placed at 8,641. This level is considered a make-or-break zone—any slip below it could trigger further correction towards the 8,232 mark. On the other hand, if the index finds support at the 20-DMA, the immediate resistance is seen in the range of 8,861 to 8,880.

The daily 14-period Relative Strength Index (RSI) showed a negative divergence at the June highs and has since slipped below its 9-day average. It is currently hovering near the 60 level. Additionally, the daily Moving Average Convergence Divergence (MACD) indicates that bearish momentum is gaining strength.

Overall, the index stands at a make-or-break point, and Friday’s trading session on June 13, 2025, is likely to be crucial in determining the near-term trend.

Notably, the Nifty India Defence Index had logged gains for three consecutive months from March to May, rising by approximately 48 per cent during this period. However, so far in June, it is down by 0.29 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.