Stocks to buy for the short term: The Nifty 50 posted a healthy gain of nearly 1% on Wednesday, 24 June, settling at 24,021.65, amid strong buying in banking and IT stocks.
The index formed a reversal pattern on intraday charts and a bullish candle on daily charts.
The macro setup appears largely favourable. Crude oil prices are below $70 per barrel now. There are positive reports surrounding a potential India-US trade deal. Geopolitical risks have ebbed.
The poor monsoon remains a concern, but it is too early to determine how it will impact the broader economy.
On Thursday, the domestic market benchmark, the Sensex and the Nifty 50, are likely to open higher, tracking mixed global market cues and a sharp fall in crude oil prices.
According to Amol Athawale, VP – Technical Research at Kotak Securities, as long as the index stays above 23,900, the pullback formation may persist, and the rally may extend to 24,150–24,200. On the other hand, below 23,900, it may retest 23,800–23,750 in the near term.
Stock picks for the short term
Amol Athawale recommends the following three stocks for the next 1-2 weeks:
PVR INOX | Previous close: ₹989.60 | Target price: ₹1,060 | Stop loss: ₹955
Athawale highlighted that after its declining trend, PVR INOX share price reversed from its important demand zone.
The stock has formed a rounding bottom chart pattern on the daily scale, and it is in a steady upward 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.
“As long as the stock is trading above ₹955, the bullish texture is likely to continue. Above which, the stock could move up to ₹1,060,” said Athawale.
Aadhar Housing Finance | Previous close: ₹506.30 | Target price: ₹540 | Stop loss: ₹490
Athawale said after the sharp up move, Aadhar Housing Finance’s share price is having a breather from the last few sessions.
The consolidation structure suggests bullish continuation chart formation.
Moreover, the stock comfortably closed above its short-term moving average. Therefore, the stock is likely to resume its uptrend from the current levels in the coming horizon.
“For the next few trading sessions, ₹490 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹540,” said Athawale.
Oberoi Realty | Previous close: ₹1,753.10 | Target price: ₹1,870 | Stop loss: ₹1,690
Athawale pointed out that on the daily charts, Oberoi Realty was trading in a range-bound mode for the past many sessions.
However, it has given a range breakout along with good volumes. In addition, the stock has formed a higher bottom series signifying bullishness.
Therefore, the close above the resistance line indicates further bullish momentum from current levels.
“For positional traders, ₹1,690 would be the decisive level. Trading above the same uptrend formation will continue till ₹1,870. However, if it closes below ₹1,690, traders may prefer to exit from trading long positions,” said Athawale.
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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 individual analysts or broking firms, 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.
