Stocks to buy for short term: The Indian stock market ended lower for the fourth consecutive week for the week ended 4 September, with the Sensex declining nearly 1% and the Nifty falling around 1.15% due to rising crude prices, higher bond yields and renewed concerns over US Federal Reserve rate hikes.
On Friday, 4 September, the Nifty broke below the crucial 24,000 mark during the week and briefly slipped below 23,800, filling the gap area created on 27 July 2026.
The daily RSI has also fallen to a two-month low, indicating a clear loss of momentum.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, said while the broader structure remains constructive, the current price action lacks strength and calls for patience.
Patel believes a sustained move back above 24,000 is crucial to reinforce the bullish setup and revive upward momentum. Above this level, 24,350 remains the immediate hurdle. A sustained breakout above 24,350 could significantly strengthen the bullish momentum and open the door for a further upward move.
“Overall, we maintain a cautiously constructive stance and believe the next decisive move above 24,000 will determine whether the current weakness is merely a pause before the next leg higher,” said Patel.
For Bank Nifty, Patel said a decisive breakout above 58,200 would confirm an upside breakout from the triangle and could trigger fresh momentum. On the downside, a break below 57,000 would negate the positive setup and signal further weakness.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:
Titagarh Rail Systems | Buy between ₹875 and ₹860 | Target price: ₹955 | Stop loss: ₹820
According to Patel, Titagarh Rail Systems has bounced back from its recent lows and is now trading above its important moving averages – these act as dynamic support levels, and holding above them signals buyers are in control.
The stock also broke above a descending trendline (a line connecting lower highs during a downtrend), which technically suggests the prior downward pressure may be easing and momentum could be turning upward.
“The RSI (Relative Strength Index) at nearly 60 shows moderate bullish strength – it’s above the neutral 50 mark but still has room before hitting overbought territory (above 70), so there’s potential runway left,” said Patel.
AIA Engineering | Buy between ₹4,250 and ₹4,200 | Target price: ₹4,475 | Stop loss: ₹4,100
AIA Engineering is trading near a confluence of technical supports, which makes this zone worth watching. It’s close to the 50% retracement of its prior up move – a Fibonacci level where stocks often find support after giving back half a rally.
This lines up with the 200-day exponential moving average (200-DEMA), a key long-term trend gauge, and also matches the previous breakout zone, where old resistance can turn into support once broken.
When several signals converge like this, it strengthens the case for a genuine demand zone where buyers may step in, offering a defined risk-reward setup.
“The idea would be to look for entries near this support cluster, with a stop-loss just below to cap downside if it fails, while a decisive move above the recent swing high would confirm renewed bullish momentum. As always, this is technical analysis, not personal financial advice – do your own research or consult an advisor before acting,” said Patel.
Tata Steel | Buy between ₹190 and ₹185 | Target price: ₹203 | Stop loss: ₹180
Tata Steel is holding just above its 200-day EMA (nearly ₹186.74), a level that had capped price during the recent decline and is now attempting to flip into support – a classic reversal signal.
The stock has also reclaimed its long-term rising trendline, suggesting the broader uptrend structure remains intact despite the pullback from the ₹220 highs.
On the RSI, the reading has climbed to nearly 56, crossing back above its signal line near 46, suggesting improving momentum without yet being overbought.
“Based on this, the idea is to buy in the ₹185–190 zone, with a stop-loss at ₹180 — placed just below the EMA/trendline support to limit downside if the reversal fails — and a target of ₹203,” 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.
