Stocks to buy for short term: The Indian stock market concluded last week on a sombre note, staying in a range of 26,100–25,700, reflecting indecision among market participants after recent volatility.
Market benchmark Nifty 50 slipped by 0.30 per cent for the week ended October 31, snapping its four-week winning streak.
Experts highlight that, on the technical front, the Nifty 50 has formed a double top formation on the daily chart, near 26,100, indicating potential exhaustion of the short-term uptrend. The hourly MACD has also exhibited a negative divergence, indicating weakening momentum and a potential short-term pullback.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, a decisive close below 25,700 may invite further profit booking, potentially dragging the index toward 25,500, which serves as the next key support level. On the other hand, if the index manages to sustain above 25,800, it could trigger a recovery toward 26,100 once again, thereby keeping the range-bound structure intact.
“Going forward, 25,700 will act as an immediate support, while 25,500 holds significance as a major support level, aligning with the previous weekly swing high — a zone where buyers are likely to re-enter the market. On the higher side, 26,100 remains a strong resistance, and a breakout above this level would be required to resume bullish momentum,” said Patel.
“Traders should remain cautious near resistance zones and look for buying opportunities only near the mentioned support areas unless the index decisively breaks above 26,100,” Patel said.
Stock picks for the short term
Jigar Patel recommends buying shares of Oil India, Aurobindo Pharma, and Latent View Analytics for the next one to two weeks.
Oil India | Previous close: ₹433.35 | Buying range: ₹425 to ₹435 | Target price: ₹490 | Stop loss: ₹400
Patel underscored that Oil India has recently witnessed a decisive breakout after consolidating in the range of ₹405– ₹428. The breakout occurred above the Ichimoku Cloud, aligning with both the 200-day EMA and 200-day SMA — indicating strong underlying trend confirmation.
The MACD has also given a bullish crossover above the zero line, suggesting the start of fresh upward momentum.
The breakout was accompanied by a sharp rise in trading volumes, reinforcing the move’s authenticity.
“Given these bullish technical signals, traders are advised to initiate long positions in the ₹425– ₹435 zone, with a potential target of ₹490 and a stop-loss at ₹400 on a daily closing basis,” said Patel.
Aurobindo Pharma | Previous close: ₹1,138.90 | Buying range: ₹1,120 to ₹1,140 | Target price: ₹1,245 | Stop loss: ₹1,070
Patel pointed out that Aurobindo Pharma has registered a strong breakout after consolidating in the range of approximately ₹1,075– ₹1,130.
The stock has moved above the Ichimoku Cloud and the 50-day EMA, signalling a firm shift in momentum and confirmation of a bullish trend.
The MACD indicator has displayed a positive crossover above the zero line, pointing toward renewed buying interest. The breakout was supported by a noticeable surge in trading volumes, validating the strength of the move.
“Considering these robust technical signals, traders may look to enter long positions in the ₹1,120– ₹1,140 zone, aiming for a target of ₹1,245, while maintaining a stop-loss at ₹1,070 on a daily closing basis,” said Patel.
Latent View Analytics | Previous close: ₹448.35 | Buying range: ₹440 to ₹450 | Target price: ₹490 | Stop loss: ₹420
According to Patel, Latent View Analytics has given a dual trendline breakout after a prolonged consolidation phase around its 200-day EMA, indicating a shift toward bullish momentum.
The stock has also broken out above the Ichimoku Cloud, further strengthening the positive outlook.
A notable surge in trading volumes during the breakout confirms genuine buying interest, while the MACD’s bullish crossover above the zero line adds to the conviction of a trend reversal.
“Based on these strong technical confirmations, traders are advised to initiate long positions in the ₹440– ₹450 zone, with an upside target of ₹490 and a stop-loss at ₹420 on a daily closing basis,” 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.
