Defence stocks surge with decisive breakouts as investors weigh profit-taking versus accumulation. The Nifty India Defence index has broken out from multi-week consolidation with strong momentum indicators validating the move. RSI holds above 60 without extreme overbought signals, while MACD turned decisively positive on daily and weekly timeframes. However, key heavyweights are flashing overbought conditions, prompting caution. Market strategists recommend avoiding chasing rallies at current levels and instead adopting a buy-on-dips strategy to navigate this well-entrenched bullish trend. This selective approach allows investors to accumulate quality defence stocks during pullbacks while maintaining exposure to the sector's strong upward momentum.
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