Stocks to buy for the short term: The Indian stock market has been in the red for the last four consecutive sessions, largely due to a lack of fresh positive triggers amid a falling rupee and a delayed India-US trade deal.
On Thursday, December 18, the Nifty ended almost flat at 25,815.55. The index is down by almost a per cent this week and looks set to extend its weekly losing run to a third consecutive week. Overall, for the month, the index is down 1.5%.
On the technical front, the index is still holding a crucial support near the previous swing low around 25,700.
Ajit Mishra, SVP of Research at Religare Broking, believes 25,700 remains a key level to monitor in the coming session, as a breakdown could lead to further correction.
On the upside, Mishra said the short-term moving average, the 20-DEMA, may act as an immediate hurdle around 25,950, and a sustained move above this level will be essential for the next leg of the up move.
“Given the prevailing choppiness and absence of strong triggers, stock-specific trading approach remains advisable, with an emphasis on disciplined risk management and controlled position sizing,” said Mishra.
Stock picks for the short term
Mishra suggests buying the following three stocks for the next one to two weeks, as he sees a favourable technical setup for them.
Infosys | LTP: ₹1,626.80 | Buy | Target price: ₹1,710 | Stop loss: ₹1,580 | Upside potential: 5%
The IT index is showing early signs of a trend reversal after a prolonged corrective phase, supported by continued weakness in the rupee, which remains favourable for the sector.
In line with this broader trend, Infosys has displayed resilience by breaking out of an ascending triangle pattern formed near the base of its prior decline, signalling a possible reversal.
The stock has established a strong pivot while holding above its moving average ribbon, reflecting improving price strength.
“Given the constructive sectoral backdrop and positive technical structure, the stock is likely to see continued buying interest,” said Mishra.
Dr. Reddy’s Laboratories | LTP: ₹1,280 | Buy | Target price: ₹1,360 | Stop loss: ₹1,240 | Upside potential: 6%
Mishra pointed out that a rotational buying interest is being seen within the pharma space, and Dr Reddy’s is exhibiting relatively stronger price behaviour by sustaining above its moving average ribbon.
After a healthy rebound from its key long-term support at the 200-week EMA, the stock entered a corrective decline within a downward channel.
The recent breakout from this corrective structure, along with sustained support above the intermediate trendline and a confluence of key moving averages, indicates exhaustion of selling pressure.
“This price action suggests a potential resumption of the primary uptrend, and the stock may be accumulated within the indicated range,” said Mishra.
The Ramco Cements | LTP: ₹1,064 | Buy | Target price: ₹1,140 | Stop loss: ₹1,020 | Upside potential: 7%
According to Mishra, Ramco Cements is exhibiting multiple signals of a trend reversal following its previous decline.
The stock has formed a strong base through prolonged consolidation in the ₹965– ₹1,060 range over the past three months, indicating sustained accumulation at lower levels.
It is now emerging from this base with the formation of a converging triangle, accompanied by a double-bottom breakout near the lower end of the corrective phase.
This price behaviour points to a structural shift from a bearish to a bullish trend.
Currently, the stock is holding above the breakout zone and its moving average ribbon, creating a fresh buying pivot.
“The overall technical setup offers a favourable risk–reward profile, with limited downside risk and meaningful upside potential, making it suitable for participation at current levels,” said Mishra.
Read all market-related news here
Read more stories by Nishant Kumar
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.
