Stocks to buy for the short term: The Indian stock market settled in the positive territory last week, as investors picked stocks selectively in financials, energy, power, and pharma sectors.
However, gains were muted as foreign institutional investors (FIIs) sold Indian stocks worth over ₹600 crore in the cash segment last week. The Nifty 50 inched up by 0.40% for the week ended February 20.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that after failing to sustain above the 26,000-resistance zone, the Nifty entered a corrective and volatile phase.
The index initially rebounded towards 25,900 but faced selling pressure, dragging it down to a fresh short-term low near 25,350.
“The 25,350–25,900 range has now become crucial for the next directional move. Immediate support is placed at 25,350–25,400; a decisive break below could trigger accelerated selling towards the 25,100 gap-fill zone. On the upside, 25,800–26,000 remains a strong resistance band, and only a sustained breakout above this zone would revive bullish momentum,” said Patel.
According to Patel, momentum indicators on lower timeframes suggest the correction is maturing, with early signs of selling exhaustion emerging. Unless a major negative trigger arises, the broader bias remains cautiously bullish.
For Bank Nifty, Patel believes the 61,500–62,000 zone continues to act as a major resistance, while 59,800–60,000 remains critical support. A decisive breakout on either side will define the next trend direction.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next one to two weeks:
IRCTC | Buying zone: ₹646 to ₹638 | Target price: ₹702 | Stop loss: ₹612
Patel highlighted that recently, Indian Railway Catering and Tourism Corporation (IRCTC) was trading in a Bollinger Band squeeze, indicating a phase of low volatility and consolidation.
In the previous session, the price broke out of the band with strong volume expansion, signalling the start of a potential expansion move.
The DMI setup remains positive, with +DI above –DI, while ADX has started to roll upward, suggesting strengthening trend momentum and the possibility of sustained upside.
“Based on this setup, one may consider buying in the ₹646–638 zone, keeping a stop loss at ₹612 on a closing basis, and looking for an upside target of ₹702,” said Patel.
Tata Chemicals | Buying zone: ₹718 to ₹710 | Target price: ₹785 | Stop loss: ₹680
According to Patel, recently, Tata Chemicals formed a strong base near its monthly floor pivot support, indicating solid demand at lower levels.
The stock has now broken out of its regression channel, and Pearson’s R value stands at 0.96, which reflects a very strong trending structure with high correlation to the regression slope.
This breakout is supported by strong volume participation, suggesting buying interest and improving momentum.
“As long as the price sustains above the pivot support zone, the overall bias remains positive. One may consider buying in the ₹718–710 zone, keeping a stop loss at ₹680 and looking for an upside target of ₹785,” said Patel.
Colgate-Palmolive (India) | Buying zone: ₹2,200 to ₹2,160 | Target price: ₹2,450 | Stop loss: ₹2,045
Patel said Colgate-Palmolive (India) closed above the Alligator indicator, with all three lines aligned and moving parallel, indicating a strong trending structure and continuation bias.
The DMI setup remains positive, with +DI above –DI, while ADX is rolling upward, suggesting strengthening trend momentum. Additionally, a bullish crossover in MACD further supports the upside view and confirms improving price momentum.
“Considering the alignment of multiple indicators, the setup favours a bullish outlook. One may consider buying in the ₹2,200–2,160 zone, keeping a stop loss at ₹2,045, and looking for an upside target of ₹2,450,” 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.
