Stocks to buy for the short term: The Nifty 50 rose over a per cent for the week ended September 5, snapping its two-week losing run. However, the Indian stock market remained rangebound last week, with the Nifty 50 moving within a narrow 500-point band.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that the index is still consolidating, but the undertone remains constructive as long as it defends the 24,400–24,350 support zone.
This level has been tested multiple times and aligns with the previous swing low, making it a crucial demand area.
On the upside, the 24,900–25,000 zone continues to act as a ceiling, Patel said.
“A decisive close above 25,000 could trigger a stronger rally towards 25,150 and 25,400. Until then, Nifty is likely to oscillate within this broader band with a positive tilt,” said Patel.
Stock picks for the short-term
Jigar Patel recommends buying shares of Apollo Tyres, Sequent Scientific, and Varroc Engineering for the next two to three weeks.
Apollo Tyres | Previous close: ₹482.80 | Target price: ₹525 | Stop loss: ₹455
Apollo Tyres is showing constructive technical signals, indicating scope for further upside.
On the daily chart, the stock is holding firm above the 100- and 200-day exponential moving averages (DEMA), reflecting strong support at lower levels.
On the weekly scale, a crucial trendline breakout has strengthened the bullish view.
The recent pullback came on thin volumes, suggesting waning selling pressure, while a smart reversal from the ₹430 zone reaffirmed support.
Adding to the optimism, the weekly MACD has given a bullish crossover near the zero line, signalling improving momentum in favour of buyers.
“Traders may look to initiate long positions in the ₹483–473 zone, with a target of ₹525, while maintaining a strict stop loss at ₹455 on a daily close basis,” said Patel.
Sequent Scientific | Previous close: ₹183.81 | Target price: ₹205 | Stop loss: ₹170
Sequent has shown encouraging technical developments, pointing towards a potential bullish move.
The stock witnessed strong consolidation near the 200-day exponential moving average (DEMA) before registering a decisive trendline breakout, reflecting strength at lower levels.
Further, the RSI breakout signals improving momentum, adding conviction to the positive outlook.
Importantly, the MACD has given a bullish crossover, supported by a histogram divergence, which suggests a shift in momentum in favour of buyers.
“These technical cues collectively indicate that the stock is poised for further upside. Traders are advised to consider long positions in the ₹184–180 zone, with a target of ₹205, while keeping a strict stop-loss at ₹170 on a daily closing basis to manage downside risk,” said Patel.
Varroc Engineering | Previous close: ₹602.10 | Target price: ₹670 | Stop loss: ₹560
Varroc is displaying a strong bullish setup supported by multiple technical signals.
On the weekly chart, the stock has formed a solid base around the 200-period EMA, reinforcing stability at lower levels.
A trendline breakout has been confirmed, highlighting renewed buying interest.
The weekly RSI has also surpassed its previous swing high, indicating strengthening momentum.
Adding further conviction, the weekly MACD has generated a bullish crossover just above the zero line, a positive sign for sustained upside.
“With these technical indicators aligning, the outlook remains constructive. Traders are advised to initiate long positions in the ₹604–595 range, aiming for a target of ₹670, while maintaining a stop loss at ₹560 on a closing basis to manage risk,” said Patel.
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Disclaimer: This story is for educational purposes only. 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.
