Defence major Bharat Dynamics share price remained higher for the third straight session on Wednesday, February 18, rising another 1.5% to the day’s high of ₹1,280 apiece as it attempted to regain strength following a massive 19% sell-off earlier this month after its December quarter results.
From the ten-month low of ₹1,227, which it touched during Monday’s trade, the defence stock has recovered nearly 2%, based on today’s high. Analysts see the rally continuing in the short term and expect the stock to touch the ₹1,340 level.
Bharat Dynamics shares: Tech setup turns positive
Domestic brokerage firm Systematrix Institutional Equities, in its latest report, said that on the daily chart, the stock has formed a strong bullish candlestick structure over the last two trading sessions, gaining nearly 1.47%, indicating renewed buying interest from lower levels.
The brokerage noted that the price action has respected the long-term trendline support near the 1,232 zone and has repeatedly avoided trading below this level, signalling accumulation and strong demand at support.
From a pattern perspective, it highlighted that the stock has completed a bullish reversal harmonic setup, with a well-defined potential reversal zone placed between 1,231 and 1,222. The recent rebound from this zone reinforces the validity of the harmonic structure and suggests a shift in momentum toward the upside.
Additionally, the brokerage pointed out that the RSI-14 is showing a positive divergence, where the price made a lower low while momentum did not confirm the weakness. This divergence typically indicates exhaustion in the downtrend and increases the probability of a near-term recovery.
“Given this strong technical setup, traders may consider buying Bharat Dynamics Ltd in the range of ₹1,262– ₹1,258, with a stop loss at ₹1,220. Upside targets are seen at ₹1,300 and potential to extend further towards ₹1,340,” the brokerage said.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said, “After a sharp decline from the beginning of the month, from around 1580 to recent lows near 1230, the stock is witnessing a bounce, largely driven by oversold conditions. While the recovery may extend further, stiff resistance is placed in the 1330–1350 zone. On the downside, 1200 is seen as immediate support. For now, the recent up move should be treated as a technical bounce rather than a trend reversal.”
Bharat Dynamics Q3 results 2026
For the December-ending quarter, Bharat Dynamics, on January 31, reported a 50% drop in its net profit to ₹73 crore, compared with ₹147 crore in the previous year. Revenue from operations also declined, falling 32% year-on-year (YoY) to ₹566.3 crore.
EBITDA dropped 80% YoY to ₹25.7 crore, with margins contracting sharply by 1,070 basis points to 4.5%. Profitability was impacted by a sharp increase in material costs, which rose to 59% from 44% in the year-ago period.
Apart from the weak set of numbers, the absence of major policy announcements for the sector in the Union Budget spooked investors, resulting in a 19% crash in Bharat Dynamics share price between February 1 and 13.
The Union Budget increased the defence allocation by 18% year-on-year to ₹7.6 lakh crore, marking a 7% rise over the revised estimates.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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