Stocks to buy for the short term: The Indian stock market benchmarks ended with thin gains on Thursday, 25 June, largely due to profit booking amid growing concerns over a poor monsoon.
As of June 23 June, monsoon deficiency is at 43.2%. Experts say that if the rainfall does not improve in the coming months, it may impact the economy and the market sentiment.
The Nifty 50 closed at 24,056, gaining 34 points, or 0.14%. For the week, it rose by 0.20%. For the month, the index is up 2%.
Ajit Mishra, SVP of Research at Religare Broking, underscores that despite favourable cues, the index continues to face a lack of momentum on the upside due to the resistance posed by key moving averages (100 and 200 DEMA).
Mishra believes that a decisive close above 24,200 remains critical for bulls to maintain firm control and approach the 200-day EMA near the 24,500 level.
He maintains a positive yet cautious stance amid the prevailing scenario and reiterates his preference for a stock-specific approach across sectors.
Stock picks for the short term
Ajit Mishra recommends buying the following three stocks for the next 1-2 weeks, keeping their respective target prices and stop losses in mind. Take a look:
Aurobindo Pharma | Previous close: ₹1,555.20 | Target price: ₹1 680 | Stop loss: ₹1,490
Mishra pointed out that Aurobindo Pharma share price continues to demonstrate strong bullish momentum, maintaining a higher-high, higher-low price structure while trading above its key moving averages, which remain positively aligned.
On the long-term charts, the stock has formed a rounding pattern and is currently testing its all-time high, reflecting underlying strength and positive price action.
“We anticipate the prevailing uptrend to continue. Additionally, the broader pharmaceutical sector remains resilient and continues to show notable strength, further reinforcing the constructive outlook for the stock,” said Mishra.
Mahindra and Mahindra | Previous close: ₹3,182.20 | Target price: ₹3,420 | Stop loss: ₹3,060
As per Mishra Mahindra and Mahindra share price is exhibiting encouraging technical strength in line with the improving outlook across the auto sector, which has been witnessing base formation and renewed buying interest.
The stock has established a strong base near its support zone and has formed a trend-reversal pattern on the charts.
It registered a breakout from this formation, supported by a noticeable increase in trading volumes, indicating strong participation.
Mishra highlighted that the breakout above the downward-sloping trendline and the stock’s attempt to reclaim its key moving averages signal a likely reversal of the prevailing trend, potentially marking the end of the corrective phase and the beginning of a fresh upward move.
Samvardhana Motherson International | Previous close: ₹151.71 | Target price: ₹163 | Stop loss: ₹146
Mishra said Samvardhana Motherson International share price has maintained a strong upward momentum after finding support near its 200-week EMA and subsequently breaking out of a broader triangular consolidation pattern on the long-term charts.
Following the breakout, the stock underwent a healthy consolidation phase, forming an elevated base while comfortably sustaining above the breakout zone and its 20-day EMA, indicating underlying buying interest.
The stock has delivered a fresh breakout from this range, accompanied by robust volume expansion, signalling the potential beginning of a new upward leg in the ongoing trend.
“Given the constructive price structure and positive momentum, traders may consider accumulating the stock,” 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.
