Stocks to buy for the short term: The Indian stock market continued witnessing a strong selloff for the second consecutive session on Thursday, March 12, with benchmarks the Sensex and the Nifty 50 falling more than 1% each.
The Nifty 50 touched an intraday low of 23,556, while the Sensex dropped to its day’s low of 75,871. However, the indices pared losses soon and traded about half a per cent lower around 11 am.
The domestic market is witnessing strong volatility amid Brent Crude rising above $100 per barrel again, with no end to the US-Iran war in sight.
Experts recommend buying quality stocks available at lower prices at this juncture.
Amol Athawale, VP of technical research at Kotak Securities, recommends three stocks to buy for the next 1-2 weeks. Take a look:
Stock picks for the short term
Cipla | Previous close: ₹1,329.50 | Target price: ₹1,420 | Stop loss: ₹1,280
Athawale underscored that after a prolonged corrective phase, Cipla shares entered an accumulation zone, reflected by their range-bound price action on the daily timeframe.
Recent price behaviour indicates improving bullish momentum, suggesting strengthening buying interest near the lower band of the range.
Athawale noted that the stock is gradually approaching the upper boundary of the consolidation zone, suggesting a range breakout.
“For positional traders, ₹1,280 remains a crucial level to watch. Sustaining above this level could confirm range expansion and trigger a continuation of the uptrend, with a potential upside target near ₹1,420. However, a decisive close below ₹1,280 may weaken the bullish setup and prompt traders to exit long positions,” said Athawale.
ABB India | Previous close: ₹6,280 | Target price: ₹6,690 | Stop loss: ₹6,030
According to Athawale, after the remarkable up move, ABB India shares were having a breather and were in a consolidation phase over the last few sessions.
However, the breakout from the range-bound structure suggests bullish continuation chart formation.
Moreover, the stock comfortably closed above its breakout levels. Therefore, the stock is likely to continue its uptrend from current levels in the near term.
“For the next few trading session ₹6,030 could be the trend decider level for the bulls, if it sustains above the same, we can expect further uptrend towards ₹6,690,” said Athawale.
Jindal Steel | Previous close: ₹1,187 | Target price: ₹1,270 | Stop loss: ₹1,140
After declining from higher levels, Jindal Steel shares rebounded from their support zone and gradually recovered from lower levels, Athawale noted.
Additionally, on the daily charts, the stock has broken out of its sloping channel.
The stock’s upticks suggest a new leg of the bullish trend from current levels.
“For positional traders, ₹1,140 would be the decisive level. Trading above the same uptrend formation will continue till ₹1,270. However, if close below ₹1,140, traders may prefer to exit from trading long positions,” said Athawale.
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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.
