Top stocks to buy for short term: The Nifty registered its sixth consecutive weekly decline for the week ended 18 September, due to elevated crude oil prices, geopolitical tensions, concerns over interest rate hikes globally, and low retail liquidity due to strong IPO activity.
On Monday, the index rose by about 0.40% in morning trade due to buying at lower levels. However, it remains in a corrective phase, with sentiment continuing to be cautious.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, underscored that after the recent decline, the index is approaching an important technical support zone, making it crucial to monitor price action rather than react to every short-term fall.
“The 23,000–23,100 zone remains the key support area and also coincides with the rising channel support. We expect this zone to provide meaningful support and ideally mark the maximum extent of the ongoing correction,” said Patel.
Patel added that the daily RSI has moved to its lowest levels of recent months, while the hourly structure is also indicating signs of a possible selling climax, suggesting that downside momentum may be getting stretched.
“On the upside, 23,500–23,700 remains the immediate resistance zone. A sustained move above 23,700 would indicate easing selling pressure, while 24,500 remains the important level for a stronger recovery. Until then, volatility is likely to remain elevated, and patience will be important,” Patel said.
For Bank Nifty, Patel believes a decisive weekly close below 55,500 could trigger another phase of selling and open the possibility of further downside. On the higher side, 57,000 remains the immediate hurdle.
“A sustained breakout above this level would signal an improvement in the near-term trend and indicate that selling pressure is gradually easing. For now, 55,500–57,000 remains the crucial range for Bank Nifty, while Nifty traders should closely monitor 23,000–23,100 on the downside and 23,500–23,700 on the upside,” said Patel.
Stock picks for the short term
Castrol India | Buy between ₹197 to ₹195 | Target price: ₹215 | Stop loss: ₹186
According to Patel, after nearly 3–4 months of consolidation, Castrol India has witnessed a breakout from its consolidation range, indicating improving price momentum.
This consolidation was formed just above the 200-week EMA, which acted as a strong long-term support zone and provided a firm base for the subsequent up move.
The recent breakout suggests renewed buying interest and a potential shift in the broader price structure.
Supporting the positive setup, the weekly RSI is trading above 60, indicating strengthening momentum on the higher time frame.
“The combination of prolonged consolidation, support from the 200-week EMA and a breakout with improving RSI makes the technical structure constructive. Traders can monitor the breakout zone for sustained price action, as holding above this area would strengthen the possibility of further upside,” said Patel.
HDFC Life | Buy between ₹550 to ₹540 | Target price: ₹580 | Stop loss: ₹530
Patel said HDFC Life has witnessed a trendline breakout on the daily chart, indicating improving price momentum.
Additionally, multiple bullish divergences on the daily RSI suggest a potential improvement in underlying momentum.
“The stock can be accumulated in the ₹550 to ₹540 zone for an upside target of ₹580, while maintaining a stop-loss at ₹530 on a closing basis,” said Patel.
Gabriel India | Buy between ₹1,320 and ₹1,300 | Target price: ₹1,410 | Stop loss: ₹1,260
According to Patel, Gabriel share price is trading near its previous breakout zone and a key demand zone, which also aligns with the 89-DEMA on the hourly chart, providing a strong confluence of technical supports.
Additionally, a bullish divergence is visible, indicating improving momentum.
“The stock can be accumulated in the ₹1,320 and ₹1,300 zone, with a stop loss at ₹1,260 and an upside target of ₹1,410,” 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.
