Top stocks to buy for short term: The Indian stock market suffered significant losses on Wednesday after the RBI hikes repo rate by 25 basis points and signalled more hikes were possible in the coming policy meetings.
The Nifty declined 0.76% to end at 22,603, forming a bearish candle on the daily chart, suggesting the possibility of further weakness.
According to Amol Athawale, VP – Technical Research at Kotak Securities, for day traders, 22,700 will remain a crucial resistance zone.
“As long as the market trades below this level, sentiment is likely to stay weak. On the downside, it may retest the 22,450–22,400 range. Conversely, a sustained move above 22,700 could extend the pullback toward 22,800–22,850. The current market trend remains non- directional, making level-based trading the ideal strategy for day traders,” said Athawale.
Stock picks for short term:
Athawale recommends the following three stocks for the next 1-2 weeks:
InterGlobe Aviation (IndiGo) | Previous close: ₹4,990 | Target price: ₹5,340 | Stop loss: ₹4,810
Athawale underscored that after a decline from the higher levels, the InterGlobe Aviation stock rebounded from its support zone and witnessed a gradual recovery from the lower levels.
Furthermore, on the daily charts, the stock has given a breakout from its sloping channel formation.
“The up moves in the stock suggest a new leg of bullish trend from the current levels. For positional traders ₹4,810 would be the decisive level. Trading above the same reversal formation will continue till ₹5,340. However, if close below ₹4,810 traders may prefer to exit out from trading long positions,” said Athawale.
Union Bank of India | Previous close: ₹173.15 | Target price: ₹185 | Stop loss: ₹167
Athawale highlighted that after the consolidation phase, the Union Bank of India stock rebounded from its multiple support zone on the daily scale.
It is witnessing a sharp recovery from the lower levels. Moreover, the stock has given a breakout from its range bound formation. The up move in the stock suggest a new leg of bullish trend in the coming horizon.
“As long as the stock is trading above ₹167, the bullish texture is likely to continue. Above which, the stock could move up to ₹185,” said Athawale.
Sona BLW Precision Forgings | Previous close: ₹810.50 | Target price: ₹880 | Stop loss: ₹782
According to Athawale, after the remarkable up move, the Sona BLW Precision Forgings stock is having a breather from last many sessions.
“The consolidation structure suggests bullish continuation chart formation. Additionally, the stock comfortably closed above its short-term moving average. Therefore, it is likely to resume its uptrend from the current levels in the coming horizon,” said Athawale.
“For the next few trading session ₹782 could be the trend decider level for the bulls, if it sustains above the same we can expect further uptrend towards ₹880,” Athawale said.
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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.
