Top stocks to buy for short term: Stock market benchmark Nifty 50 ended with a strong loss of 257 points, or 1.11%, at 22,888.95 on Monday, 19 October, snapping its two-day winning run, due to persistent global and domestic macroeconomic concerns
Higher brent crude prices amid geopolitical tensions and supply-side uncertainties have fuelled concerns over inflation flare-up. Besides, foreign capital outflow, elevated bond yields in the US and chances of further rate hikes by the US Federal Reserve are also key concerns, keeping market sentiment low.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, underscored that from its 8 October low of 22,180, the Nifty has seen some decent rise, which reinforces the view of avoiding panic selling during the breakdown near 22,200.
“We maintain our ‘buy on dips’ stance. The immediate support zone is placed at 22,800–22,600, with 22,600 emerging as a crucial level to defend. On the upside, 23,200 remains the immediate resistance. A sustained breakout above this level could open the door towards 23,600 in the coming week,” said Patel.
For Bank Nifty, Patel said that a sustained move above 56,000 could trigger further upside towards 57,000, which remains a crucial resistance level. On the downside, support has shifted higher to the 55,200–54,700 zone, making it an important area to monitor.
“As long as the index sustains above this support band, the near-term outlook remains positive. A decisive breakout above 56,000 would further strengthen bullish momentum and improve the prospects of an advance towards 57,000,” said Patel.
Stock picks for short term
Just Dial | Previous close: ₹731.75 | Target price: ₹800 | Stop-loss: ₹670
Just Dial is showing encouraging technical signals, with the stock witnessing a breakout after a period of consolidation just above its 50, 100 and 200-day exponential moving averages (DEMAs).
This consolidation indicates price stability and improving buying interest, while the subsequent breakout suggests a potential continuation of the upward momentum.
The technical outlook is further supported by the Relative Strength Index (RSI) on both the daily and weekly charts trading above 60, indicating strong momentum across short-term and medium-term timeframes.
“Sustained trading above these key moving averages could strengthen the bullish structure and support further upside. Traders may consider buying the stock for a potential target of ₹800, while maintaining a strict stop-loss at ₹670 to manage downside risk,” said Patel.
Oriental Hotels | Previous close: ₹148.99 | Target price: ₹171 | Stop-loss: ₹140
Orient Hotels is displaying encouraging technical signals, with the stock witnessing a strong breakout following a period of consolidation just above its 50-day DEMA.
This consolidation indicates price stability and the formation of a potential support base, while the subsequent breakout suggests improving buying interest and the possibility of further upside.
The bullish outlook is supported by the Relative Strength Index (RSI) on both the daily and weekly charts, which is around or above the 60 mark, indicating strengthening momentum across short-term and medium-term timeframes.
“Sustained trading above the 50-day DEMA could help maintain the positive price structure. Traders may consider buying the stock with a target of ₹171, while maintaining a strict stop-loss at ₹140 to manage downside risk,” said Patel.
BSE | Previous close: ₹3,336 | Buy between ₹3,400– ₹3,250 | Target price: ₹4,000 | Stop-loss: ₹3,000
BSE is displaying encouraging technical signals, with a hidden bullish divergence emerging on the weekly chart, indicating the potential continuation of its prevailing uptrend.
This pattern typically forms when the price records a higher low while the Relative Strength Index (RSI) forms a lower low, suggesting that the underlying bullish trend may remain intact despite intermittent corrections.
The weekly RSI near the 40 level adds to the positive outlook, as this zone has historically acted as a support cushion during healthy uptrends.
Additionally, the 50-week Exponential Moving Average (EMA) coincides with the previous breakout zone, creating a confluence of technical support.
“This alignment strengthens the overall setup and improves the risk-reward proposition. Investors may consider accumulating the stock in the ₹3,400– ₹3,250 range, with an upside target of ₹4,000. A strict stop-loss at ₹3,000 should be maintained on a closing basis,” 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.
