Stocks to buy for the short term: Domestic market benchmarks- the Sensex and the Nifty 50- clocked strong gains on Thursday, supported by favourable global cues amid the ongoing visit of US President Donald Trump to China.
The Nifty 50 ended at 23,689.60, rising 1.18%, while the Sensex jumped 1.06% to settle at 75,398.72.
“The improvement in sentiment was supported by favourable global cues and easing concerns over immediate geopolitical escalation following optimism surrounding ongoing discussions between the US and Chinese leadership regarding the broader Middle East situation. Oversold market conditions and bargain buying in select index heavyweights also aided the rebound,” said Ajit Mishra, SVP of Research at Religare Broking.
However, Mishra added that elevated crude oil prices, continued weakness in the rupee, and sustained foreign institutional outflows kept the overall mood cautious.
Technically, the Nifty is witnessing a relief rebound after the recent slide.
According to Mishra, the earlier support zone of 23,800–23,900, which coincides with the lower band of the previous consolidation range and the 20-DEMA, may now act as a key resistance hurdle.
On the downside, immediate support has shifted to 23,500, while the major support remains intact near 23,150, said Mishra.
“The overall structure still suggests a sell-on-rise bias unless the index decisively surpasses the resistance band. We continue to recommend a stock-specific approach based on sectoral trends while maintaining caution on leveraged positions,” Mishra said.
Stock picks for the short term
Ajit Mishra recommends the following three stocks for the next 1-2 weeks:
Power Finance Corporation (PFC) | Target price: ₹482 | Stop loss: ₹434
According to Mishra, Power Finance Corporation has shown a healthy correction in an up-move where the primary trend of the stock is positive, approaching its crucial support zone near its rising moving average.
The ongoing decline appears to be forming a falling wedge pattern, typically considered a bullish continuation structure.
“Despite recent profit booking, the stock continues to maintain a higher high and higher low formation, indicating underlying strength in trend structure. Volume behaviour remains supportive, suggesting accumulation at lower levels,” said Mishra.
“Momentum indicators are gradually stabilising, and any breakout above the falling trendline could trigger renewed buying interest and continuation of the primary upward trend,” Mishra said.
Tata Steel | Target price: ₹237 | Stop loss: ₹212
Tata Steel has exhibited renewed bullish momentum following a decisive breakout toward fresh swing highs, reaffirming the strength of the prevailing upward trend.
The stock continues to trade comfortably above its key moving averages, indicating sustained medium- to long-term positive price structure.
Elevated volumes during the breakout phase highlight strong market participation and accumulation at higher levels.
In addition, momentum oscillators remain positively aligned, supporting the likelihood of further upside extension.
“Overall, the technical configuration remains constructive and suggests continued strength with a favourable near-term outlook for the stock,” said Mishra.
Divi’s Laboratories | Target price: ₹7,450 | Stop loss: ₹6,630
As per Mishra, Divi’s Laboratories is showing a strong bullish setup on the weekly chart, supported by a decisive breakout above a prolonged falling channel’s resistance.
The stock has regained strength after a consolidation phase and is trading comfortably above its key moving averages, indicating an improving trend structure and sustained buying momentum.
The recent breakout from the broader consolidation channel suggests the potential for trend continuation in the coming sessions.
“Momentum indicators are gradually strengthening, while higher highs and higher lows reinforce the prevailing bullish bias and improving medium-term outlook,” said Mishra.
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Disclaimer: This story is for educational purposes only and does not constitute investment advice. 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.
