Stocks to buy for the short term: The Indian stock market benchmark Nifty 50 snapped its two-week winning streak, ending 0.83% lower for the week ended 14 August as geopolitical concerns, including US-Iran tensions, elevated crude oil prices near $87 per barrel and uncertainty around global yields weighed on investor sentiment.
The market continued to consolidate within the 23,800–24,400 range due to persisting concerns. However, strong Q1FY27 earnings provided some cushion.
From a technical perspective, Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, finds the broader market structure constructive despite the recent correction.
“Nifty has retraced towards the 50% Fibonacci retracement level at 24,190, while the 50%–61.8% retracement zone of 24,190–24,054 is likely to act as a crucial support area. We believe any correction towards this zone should be viewed as an opportunity to accumulate quality positions rather than as a trend reversal,” said Patel.
“The current pullback appears to be a healthy retracement within the broader uptrend. A sustained move above 24,500 would strengthen the bullish momentum and potentially open the way towards 25,000 and higher levels in the coming weeks. As long as the 24,050–24,190 zone holds, investors can continue to use dips to build fresh positions,” Patel said.
For Bank Nifty, Patel believes a sustained move above 58,000 could trigger fresh buying momentum and push the index towards 59,000–59,500 in the coming sessions. On the downside, 57,000 remains the key support, coinciding with the rising trendline. A decisive break below this level could extend the consolidation and lead to further weakness.
Stock picks for the short term
Jigar Patel maintains a cautiously bullish stance, with the broader market structure remaining positive as long as key support levels are protected. He recommends buying the following three stocks for the next 1-2 weeks:
Bata India | Previous close: ₹755.70 | Target price: ₹820 | Stop loss: ₹710
Patel pointed out that Bata India share price is showing signs of a potential bottom formation after a prolonged downtrend, with the stock finding strong support in the ₹620–680 zone.
The recent rebound above ₹700, along with RSI at 52.10 crossing above its signal average, indicates improving momentum.
“The stock can be bought on dips around ₹735 – ₹720, keeping ₹710 as the stop loss on a closing basis. Sustaining above ₹750 could strengthen the recovery and open the way towards the ₹820 target,” said Patel.
“The broader setup remains cautiously bullish as long as the stock holds above ₹710. A decisive break below ₹710 would weaken the recovery structure and could bring renewed selling pressure. Overall, dips towards the suggested buying zone offer a favourable risk-reward opportunity for a positional trade,” Patel said.
Bharat Dynamics (BDL) | Previous close: ₹1,398 | Target price: ₹1,550 | Stop loss: ₹1,300
As per Patel, the BDL share price is showing a positive setup on the weekly chart after reclaiming the key ₹1,350–1,380 zone.
The stock has broken above the descending trendline, indicating an improving price structure and potential trend reversal.
RSI at 54.65 has moved above its signal average, supporting the bullish bias.
“The stock can be accumulated on dips around ₹1,390 – ₹1,360, keeping ₹1,300 as the stop-loss on a closing basis. If the stock sustains above the breakout zone, the next major resistance comes near ₹1,500, followed by the previous supply zone around ₹1,550–1,600. Hence, the positional target is ₹1,550. Overall, the view remains bullish above ₹1,300, with dips offering a favourable risk-reward opportunity,” said Patel.
Aarti Industries | Previous close: ₹534.10 | Target price: ₹600 | Stop loss: ₹495
Patel highlighted that Aarti Industries share price is showing a strong bullish setup on the weekly chart, with the stock trading above the 20-week EMA at ₹473.86 and 50-week EMA at ₹450.05, indicating a positive medium-term trend.
The stock has also moved above the Ichimoku cloud, supporting further upside. MACD is also positive, adding further momentum confirmation.
RSI at 66.18 reflects strong momentum, while +DI at 29.14 remains significantly above -DI at 13.31, confirming bullish directional strength.
“Buy the stock on dips around ₹520 – ₹530, with a strict stop loss at ₹495 and a target of ₹600,” said Patel.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
