J-10 fighter jets maker Avic Chengdu Aircraft share price crashes 11.5% in three days after PM Modi's address to nation

Avic Chengdu share price: The high-flying Chinese defence company, Avic Chengdu Aircraft, shares have lost over 11% of their value in three days, following a strong-worded message by Prime Minister Narendra Modi a day ago on the successful completion of Operation Sindoor.

Following PM Modi's message, shares of Chinese defence companies faced a heavy selloff on Tuesday, even as Indian defence stocks rallied. Avic Chengdu Aircraft is the maker of J-10 fighter jets, which Pakistan Deputy Prime Minister Ishaq Dar said were used by its air force.

Avic Chengdu Aircraft share price today opened with a downside gap at 87.88 yuan per share and touched an intraday los of 85 yuan per share, logging an intraday loss of nearly 6%. 

From Monday's close of 95.86 yuan per share levels, China's Avic Chengdu Aircraft stock has declined by over 11.50%. As of 8:32 am IST today, May 15, the Chinese defence stock was trading at 85.20 yuan per share mark after touching an intraday low of 85, logging around 11.50% dip in three successive days after PM Modi's address to the nation.

However, since the launch of Operation Sindoor on the night of May 6, the Chinese defence stock Avic Chengdu Aircraft has surged over 60% in a matter of days.

PM Modi's strong message to Pakistan, world

PM Modi warned Pakistan that India will not succumb to nuclear blackmail and sent a clear message to the world: terror and trade, terror and talks cannot go together.

Hailing India's air defence system, PM Modi said, “The world saw how Pakistan’s drones and missiles fell like straws in front of India. India’s strong air defence system destroyed them in the sky itself.”

He further added that Operation Sindoor is India's new policy against terrorism and our unwavering pledge for justice. "It is the new normal. We have only kept in abeyance our operations against Pakistan and the future will depend on their behaviour," Modi said in his address.

Avic Chengdu Aircraft share price outlook

Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, Avic Chengdu Aircraft share price is currently in an overbought zone on the weekly chart, indicating limited upside potential in the near term. 

“A stiff resistance has been established in the 90–95 range, where the price has failed to break out decisively. This price action has led to a double top pattern, a classic bearish reversal signal. Given the current technical setup, booking profits at these levels is advisable. A better entry opportunity may arise near the support zone of 65–70, where buyers have previously shown interest,” Dongre added. 

He advised traders to avoid fresh entries at current levels and consider buying on dips closer to the support range for a favourable risk-reward setup.

Anshul Jain, Head of Research at Lakshmishree Investment, said that China's Avic Chengdu Aircraft share price broke out of its base at 73 Yuan per share and surged quickly to 97.55. Following the sharp rally, profit booking has set in, and a retest of the breakout zone around 73 Yuan per share appears likely, said Jain.

“This pullback could offer a buying opportunity if the stock shows signs of stability and renewed demand at that level. Traders should closely watch price action, which is near 73 Yuan per share, for a potential reversal setup with defined risk,” 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.