Stocks to buy for the short term: The Indian stock market benchmark Nifty 50 slipped by almost a per cent for the week ended Friday, February 13, snapping its two-week winning streak, largely due to heavy selling in IT stocks amid global concerns over AI-driven disruptions.
The Nifty IT index crashed over 8% for the week and extended losses to the fourth consecutive week.
The Nifty 50 closed at 25,471.10 on Friday. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, said the 25,400 level will act as a crucial pivot for this week.
Patel said a decisive break below 25,400 could trigger a gap-fill move towards 25,100, which stands as the immediate and vulnerable support zone.
However, hourly charts indicate oversold conditions, suggesting the correction may be in its mature phase, with signs of potential selling exhaustion and a base forming.
On the upside, 25,800–26,000 remains the key intermediate resistance band, and only a sustained move above this zone would revive bullish momentum, said Patel.
For Nifty Bank, Patel believes the 60,000–59,500 area remains crucial support, and as long as it holds, the index could attempt a fresh upward move towards 61,500–62,000, where a decisive breakout would be required to confirm the next leg of the uptrend.
“Overall, the market remains in a corrective consolidation phase, but the structure indicates a maturing correction rather than a fresh breakdown, suggesting traders should remain selective and watch key support levels closely for the next directional trigger,” said Patel.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next one to two weeks:
Coal India | Previous close: ₹408.95 | Buying zone: ₹410–400 | Target price: ₹440 | Stop loss: ₹385
Patel pointed out that Coal India is in a corrective phase following a nearly 90-point rally from its 370 lows.
The stock is now approaching the critical 61.8% Fibonacci retracement level near ₹405, which coincides with a flat Ichimoku Cloud, the 200 DEMA, and the previous breakout zone—creating a strong confluence support area.
The momentum indicator MACD has almost delivered a full-fledged downside move, suggesting the correction is in its mature stage.
“We anticipate a final dip toward the ₹400, post which MACD may begin reversing into positive territory. Consequently, accumulation can be considered in the ₹410–400 zone with a target of ₹440, while maintaining a strict stop loss below ₹385 on a daily closing basis,” said Patel.
IFCI | Previous close: ₹62.87 | Buying zone: ₹63– ₹61 | Target price: ₹72 | Stop loss: ₹57
Patel noted that IFCI is showing encouraging technical signs.
The stock has moved above the William Alligator indicator, and importantly, the three lines — jaw, teeth, and lips — are running parallel, which generally indicates the emergence of a sustainable trending move after consolidation.
Momentum indicators are also supporting the bullish view. The MACD has crossed above the zero line, highlighting a shift toward positive momentum, while the DMI has turned positive, suggesting strengthening buying pressure and improving trend strength.
“With price structure and momentum indicators aligned, the setup favours further upside. Traders can look to accumulate the stock in the ₹63– ₹61 range, keeping a stop loss at ₹57, while aiming for a potential target of ₹72 in the near term,” said Patel.
Finolex Industries | Previous close: ₹188.73 | Buying zone: ₹190–184 | Target price: ₹220 | Stop loss: ₹170
Patel said Finolex Industries’ price action has decisively taken out the monthly pivot R1 resistance, supported by a breakout above the Ichimoku Cloud, indicating a shift toward bullish momentum.
The Alligator indicator shows all three lines running parallel, suggesting the emergence of a sustained trending move.
Additionally, a notable surge in volumes confirms strong participation at higher levels. The DMI remains positive, highlighting a strengthening trend momentum, while the MACD has given a bullish crossover, further reinforcing the positive outlook.
“Based on this confluence of technical signals, we advise accumulating the stock in a staggered manner within the ₹190–184 zone, maintaining a strict stop loss at ₹170 and targeting ₹220 in the near term,” 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.
