Stocks to buy for the short term: Frontline indices, the Sensex and the Nifty 50, erased gains seen in early deals on Tuesday due to profit booking amid rising oil prices and anticipation of a rate hike by the US Federal Reserve on Wednesday.
The Sensex declined nearly 200 points, while the Nifty touched an intraday low of 23,317 in the morning session on Tuesday.
Experts expect the market to remain volatile with a negative bias ahead of the US Federal Reserve’s policy decision.
The ongoing conflict between the US and Iran has fuelled concerns over inflation and the consequent rate hikes, elevating the US dollar and bond yields. The confluence of headwinds is keeping the market down.
Stock picks for the short term
Vishnu Kant Upadhyay of Master Capital Services and Sachin Gupta of Choice Broking recommend the following six stocks to buy for the next 1-2 weeks.
Expert: Vishnu Kant Upadhyay, AVP- Research at Master Capital Services
Varun Beverages (VBL) | Previous close: ₹416.25 | Target prices: ₹455 and ₹465 | Stop loss: ₹380
According to Upadhyay, VBL is attempting to form a base around the ₹390 – ₹400 zone, which has acted as an important historical support area.
The recent stabilisation near these levels indicates emerging buying interest after the prolonged corrective phase.
Importantly, the daily chart is exhibiting a bullish RSI divergence, suggesting improving underlying momentum despite price weakness.
“A sustained hold above the ₹390 zone could trigger a recovery towards the stock’s short-term moving averages. Considering the potential base formation at the current juncture, prices are looking to pave the way for ₹445 and then ₹460,” said Upadhyay.
Power Grid Corporation of India | Previous close: ₹ 269.10 | Target prices: ₹292 and ₹298 | Stop loss: ₹249
Upadhyay said Power Grid shares have rebounded sharply from near the 200-week EMA and have shown signs of a short-term trend reversal after a prolonged downward phase.
The earlier downtrend appears to be losing momentum, with price action now indicating a higher high.
The stock has also reclaimed its 21 EMA, reflecting improving near-term price strength.
Momentum indicators are supportive, with RSI improving to 54, suggesting further scope for upward movement without entering an overbought zone.
One 97 Communications (Paytm) | Previous close: ₹1,806.25 | Target prices: ₹1,960 and ₹1,990 | Stop loss: ₹1,670
Upadhyay underscored that Paytm shares have maintained a strong uptrend, with the stock recently breaking above its previous swing high, confirming continued buying interest.
The price structure remains positive, marked by a consistent formation of higher highs and higher lows.
Previous corrective declines have repeatedly found support around the 21 EMA, highlighting sustained momentum and dip buying activity.
The stock is currently trading above all its key short and long-term moving averages, further reinforcing the bullish trend.
The RSI is around 65, indicating healthy momentum with further room for upside before entering an extreme zone.
Expert: Sachin Gupta, VP – Research at Choice Equity Broking
Newgen Software Technologies | Previous close: ₹501 | Target price: ₹565 | Stop loss: ₹500
According to Gupta, Newgen Software share price has shown a positive setup on the daily chart after taking strong support near the lower trendline of a Triangle pattern.
The stock has also witnessed accumulation at lower levels, indicating buying interest and providing a base for a potential upward move.
The RSI stands at 48.60, reflecting a neutral momentum bias with scope for improvement.
“From a trading perspective, Newgen may be considered for buying in cash at ₹519, with a stop loss at ₹500 and a target of ₹565. Sustained holding above the lower trendline support and continued accumulation could support further upside towards the stated target,” said Gupta.
IDBI Bank | Previous close: ₹83.44 | Target price: ₹94 | Stop loss: ₹83
According to Gupta, IDBI has shown a positive price setup on the daily chart after bouncing from a major support zone.
The recovery from this key support level indicates buying interest at lower levels and suggests the possibility of further upside in the near term.
The stock is also trading well above its 50-day and 100-day EMAs, supporting the current positive price structure.
The RSI is at 48.24, indicating a neutral momentum bias with scope for improvement if buying interest continues.
“From a trading perspective, IDBI may be considered for buying in cash at ₹86, with a stop loss at ₹83 and a target of ₹94. Sustained strength above the key moving averages could support further upward movement,” said Gupta.
Info Edge (Naukri) | Previous close: ₹ 1,250.90 | Target price: ₹1,400 | Stop loss: ₹1,244
Gupta said Naukri share price has shown a positive setup after taking a retracement on the weekly timeframe and finding support near its 50-day EMA on the daily chart.
The stock has bounced from this key moving-average level, indicating buying interest at lower levels and the possibility of a recovery in the near term.
The RSI is at 51, reflecting a neutral-to-positive momentum bias and scope for further improvement if buying interest continues.
“From a trading perspective, Naukri may be considered for buying in cash at ₹1,296, with a stop loss at ₹1,244 and a target of ₹1,400. Sustained trading above the 50-day EMA could support further upside,” said Gupta.
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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 individual analysts or broking firms, 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.
