AVIC Chengdu Aircraft share price: J-10 fighter jet maker stock crashes 20% from May peak amid India-Pakistan conflict
AVIC Chengdu Aircraft share price: The bullish trend seen in the shares of AVIC Chengdu Aircraft’s share price at the peak of the India-Pakistan conflict seems to have fizzled out as the stock of the J-10 fighter jet maker has tumbled 20% from its May peak.
In a matter of just 14 sessions, Chinese defence company AVIC Chengdu Aircraft’s stock has fallen from its May 12 high of 95.86 yuan to today’s low of 76.04 yuan.
Why is AVIC Chengdu Aircraft stock falling?
The Chinese defence stock has suffered losses after Prime Minister Narendra Modi publicly poked holes in Pakistan’s claims that Chinese-made fighter jets were responsible for destroying the Indian Air Force’s Adampur airbase.
“Pakistan claimed it damaged our S-400 and BrahMos missile bases with JF-17 jets, which is completely false,” said Colonel Sofiya Qureshi. “It also spread misinformation about damage to Indian airfields in Sirsa, Jammu, Pathankot, Bhatinda, Nalia, and Bhuj — all of which is untrue.”
Additionally, the fall in AVIC Chengdu and other Chinese defence stocks can also be attributed to the successful completion of India’s Operation Sindoor, which highlighted India’s military prowess. Also, a ceasefire between India and Pakistan dampened the interest.
The Chinese defence index HS China A Aerospace & Defence has tumbled 6% from its May 4,396.58.
At the same time, the Nifty India Defence index is hitting fresh highs. So far in May, the index is up 22%, adding on to the gains seen in April (up 11.5%) and March (up 25%).
AVIC Chengdu stock: Technical outlook
Chengdu peaked out in May and has been under continuous selling pressure since, failing to attract any meaningful buying support, said Anshul Jain, Head of Research at Lakshmishree Investments.
“The stock is approaching a critical support zone at ₹74– ₹76. A decisive breach below this level will likely trigger further downside, with the next target placed at ₹68. The prevailing weak structure suggests limited upside, and unless strong buying emerges, the bearish momentum may continue to dominate in the near term,” Jain added.
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.
