Avic Chengdu Aircraft share price: The stock of Chinese defence company Avic Chengdu Aircraft, which manufactures the J-10 fighter jets used by Pakistan air force against India, has come under selling pressure following the successful completion of India’s Operation Sindoor and a strong-worded message by Prime Minister Narendra Modi regarding intolerance of any kind of terrorism.
Against this backdrop, Avic Chengdu Aircraft share price has seen a volatile few days, falling in two of the last three trading sessions. On Thursday, the Chinese defence stock opened at 87.74 yuan, down 3% from its last closing price of 90.35 yuan. It later extended losses, falling 6.30%, to the day’s low of 84.65 yuan.
In the three trading sessions, Avic Chengdu Aircraft share price has lost nearly 12% of its value.
However, despite the recent selloff, China’s J-10 fighter jet maker’s stock has rallied 43.83% in May alone amid the deployment of the jets by Pakistan’s air force following increased tensions with India.
Barring the stellar rally in May, Avic Chengdu Aircraft share price has recorded back-to-back losses for four months, nosediving 19% during this period.
Avic Chengdu Aircraft share price target
Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, believes that the Chinese defence stock is trading in an overbought zone and is likely to see limited gains in the near term.
“Avic Chengdu Aircraft is trading in the overbought zone on the weekly chart, indicating limited upside potential in the near term. The stock has established stiff resistance in the 90–95 range, where it has repeatedly failed to break out decisively. This price behaviour has led to a double top pattern, a classic bearish reversal signal, suggesting increased caution for traders,” Dongre said.
He sees immediate support for Avic Chengdu stock at the 76 mark. “A closing below this level could trigger further correction, potentially dragging the stock down to the 60–65 range. Given the current technical setup, traders are advised to avoid fresh entries at the current levels and instead wait for a dip closer to the stronger support zone before considering long positions. Buying near the 60–65 range would offer a more favourable risk-reward opportunity,”advised Dongre.
