Stocks to buy for the short term: Frontline indices ended with strong gains on Wednesday, 16 April, propelled by hopes that an end to the US-Iran conflict could be near after reports suggested both countries would come back to the negotiation table in the next few days.
The Sensex surged 1,264 points, or 1.64%, to close at 78,111, while the Nifty 50 jumped 389 points, or 1.63%, to settle at 24,231.
The domestic market is expected to extend its gains on Thursday, 16 April, amid positive global cues. Major Asian markets traded higher on Thursday, following overnight gains on Wall Street, amid rising hopes of a US-Iran peace deal.
On the technical front, the Nifty 50 appears poised for an uptrend.
Amol Athawale, VP – Technical Research, Kotak Securities, noted that on the daily charts, the index formed a small bullish candle on Wednesday, while on the intraday charts, it is holding a higher bottom, which is largely positive.
“We are of the view that the intraday market texture is upward, but for day traders, it would be ideal to buy on intraday dips and sell on rallies. On the downside, 24,000 and 23,900 would act as key support zones, while 24,450–24,500 could serve as crucial resistance levels for the bulls. Below 23,900, the sentiment could change, and traders may prefer to exit their long positions,” said Athawale.
Stock picks for the short term
Amol Athawale recommends the following three stocks to buy for the next 1-2 weeks:
Tech Mahindra | Previous close: ₹1,483.80 | Target price: ₹1,585 | Stop loss: ₹1,430
Athawale pointed out that after a decline, the Tech Mahindra share price reversed from an important support zone.
“The stock has formed a rounding bottom chart pattern on the daily scale, and it is in a gradual up move. The technical indicator, like RSI, is also indicating a further uptrend from current levels, which could boost the bullish momentum in the coming horizon,” said Athawale.
“As long as the stock is trading above ₹1,430, the bullish texture is likely to continue. Above which, the stock could move up to ₹1,585,” Athawale said.
Lupin | Previous close: ₹2,338.90 | Target price: ₹2,500 | Stop loss: ₹2,250
Athawale said Lupin shares have broken out of their symmetrical triangle chart pattern on the daily scale, along with incremental volume.
On weekly charts, the stock has formed a higher bottom; the structure suggests further bullish momentum in the near term.
“Unless it trades below ₹2,250, positional traders can retain an optimistic stance and look for a target of ₹2,500,” said Athawale.
Maruti Suzuki India | Previous close: ₹13,289 | Target price: ₹14,200 | Stop loss: ₹12,800
According to Athawale, Maruti Suzuki shares are in the accumulation zone after their downward trend, trading in a rangebound mode on the daily scale.
However, recent bullish activity in the stock indicates strong momentum.
“The stock is expected to break out of the range and witness the bullish momentum from the current levels with a favourable risk and reward perspective. For the next few trading sessions, ₹12,800 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹14,200,” 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.
