Stocks to buy for the short term: Stock market benchmarks, the Sensex and the Nifty 50, extended losses for the second consecutive week, ending 21 August, amid rising oil prices and a lingering US-Iran stalemate. For the week, the Sensex slipped 0.60%, while the Nifty 50 declined 0.50%.
On Monday, the frontline indices moved up slightly, tracking declines in oil prices and weak global cues. The Nifty 50 touched an intraday high and low of 24,313 and 24,240 till 11 AM on Monday.
The market remains in a range due to the US-Iran stalemate, which is keeping oil prices above $90 per barrel. Experts believe the domestic market may not break the range as long as a concrete positive development on the US-Iran conflict is announced.
From a technical perspective, the Nifty has found support around the 24,000 mark, an important technical zone.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that 24,000 is supported by a combination of the daily gap area, rising trendline and the 61.8% Fibonacci retracement of the previous up-move. Therefore, he believes the buy-on-dips strategy remains valid as long as the index holds its key support levels.
Patel said the immediate support zone is at 24,000–24,100. The broader trend remains positive as long as 23,600 holds on a closing basis. On the upside, 24,300 will be the first important hurdle. A sustained move above 24,500–24,750 can improve momentum and open the door towards the 25,000 mark.
However, the journey towards 25,000 is likely to be gradual, with intermittent profit-taking and consolidation.
For Nifty Bank, a sustained breakout above 58,200 could trigger fresh buying and drive further gains. On the downside, 57,000 remains a crucial support. A break below this level could weaken the structure and lead to further selling pressure, said Patel.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:
Axis Bank | Buy in the range of ₹1,250 to ₹1,235 | Target price: ₹1,335 | Stop loss: ₹1,200
Patel pointed out that the Axis Bank share price is forming a double-bottom near an important trendline of support, suggesting that selling pressure may be weakening and buyers are gradually gaining control.
The formation suggests a potential reversal if the stock sustains above the recent swing high. Momentum indicators also support the setup, with bullish divergence visible on both the RSI and the MACD.
“This divergence indicates that while price has tested or remained near the lower levels, momentum has started improving, which can signal an early shift in trend,” said Patel.
Meesho | Buy in the range of ₹205 to ₹200 | Target price: ₹225 | Stop loss: ₹190
Patel said Meesho share price has given a strong breakout above the R4 Monthly Camarilla resistance, indicating a significant improvement in buying momentum.
The price has also moved above the Ichimoku Cloud, suggesting a positive shift in the broader trend and strengthening the bullish structure.
Momentum indicators are supporting the breakout, with RSI indicating improving strength, MACD confirming positive momentum, and DMI showing favourable directional strength.
“The combination of price breakout and indicator confirmation increases the probability of further upside if the stock sustains above the breakout zone,” said Patel.
Happiest Minds Technologies | Buy in the range of ₹446 to ₹433 | Target price: ₹500 | Stop loss: ₹410
According to Patel, Happiest Minds Technologies shares have witnessed a strong breakout above the R4 Monthly Camarilla resistance along with a decisive move above the Ichimoku Cloud, indicating improving price strength and a positive trend reversal.
The breakout is further supported by momentum indicators, with RSI showing strength, MACD confirming positive momentum, and DMI indicating favourable directional strength.
“This combination suggests that buying interest is gaining momentum and the stock could witness further upside if it sustains above the breakout zone,” 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.
