Stocks to buy for the short term: The stock market benchmark Nifty 50 has started July on a strong note amid positive global cues, the revival of the monsoon, the appreciation of the rupee, and a sharp decline in oil prices over the last few weeks.
Nifty 50, on the monthly chart, has resumed its higher high formation after last month’s high wave candle. The index, however, is witnessing some profit booking. It dropped to levels near 24,200 during the session.
Pabitro Mukherjee, Deputy Vice President – Technical, Bajaj Broking, expects the index to maintain a positive bias and head towards 24,800, which is the trendline resistance joining the previous major breakdown area. A breakout above 24,800 can open further upside towards 25,100-25,200 levels in the coming months.
“Some consolidation cannot be ruled out in the Nifty. However, we believe the overall structure is positive, dips towards the 24,200-24,000 should be used to accumulate quality stocks in a staggered manner,” said Mukherjee.
“Short-term support for the Nifty is revised higher towards 23,800-23,700 levels. Index sustaining above the same will keep the bias positive,” Mukherjee said.
Stock picks for the short term
Pabitro Mukherjee recommends buying the following five stocks for the next six months:
Reliance Industries | Buy in the range of ₹1,295 to ₹1,320 | Target price: ₹1,425 | Stop loss: ₹1,239
Mukherjee noted that Reliance Industries’ share price has been consolidating over the past four weeks following the recent corrective decline and is currently near a crucial support zone.
This technical setup offers a favourable risk-reward profile, positioning the stock for a potential bullish reversal and the next leg of the uptrend.
Mukherjee pointed out that the stock has strong support around ₹1,250– ₹1,280, which is the confluence of the following technical observations:
(i) 61.8% retracement of the April 2025-January 2026 up move.
(ii) The 200-week EMA is placed around ₹1,290, which has historically acted as a strong demand area for the stock.
(iii) The previous breakout area is placed around ₹1,260- ₹1,280, which is likely to reverse its role and act as support in the medium term as per the change of polarity concept.
“The ongoing corrective phase appears to be nearing exhaustion; we anticipate the stock to resume its uptrend and head towards ₹1,425 in the coming quarters, being the 61.8% retracement of the recent decline from ₹1,473 to ₹1,253,” said Mukherjee.
Bharti Airtel | Buy in the range of ₹1,910 to ₹1,942 | Target price: ₹2,125 | Stop loss: ₹1,810
Mukherjee pointed out that Bharti Airtel’s share price has broken out above the last 4 months’ consolidation range of ₹1,740 to ₹1,930, signalling the continuation of the up move and offering a fresh entry opportunity for the next leg.
A key technical observation on the weekly chart is that the stock price has recently rebounded, taking support in the ₹1,700 to ₹1,750 range, which is the confluence of the 61.8% retracement of the previous up move from ₹1,559 to ₹2,174 and the previous major breakout area of April 2025.
Time-wise, the stock has already taken 8 months to retrace just 61.8% of its previous 9 months’ rally from ₹1,559 to ₹2,174. A shallow retracement and a rebound from a key support area highlight the strength and continuation of the primary uptrend.
“Going ahead, we expect stocks to head towards the ₹2,125 level over the coming months, being the measuring implication of the last 4 month-range of ₹1,740 to ₹1,930,” said Mukherjee.
Bharat Electronics (BEL) | Buy in the range of ₹412 to ₹422 | Target price: ₹464 | Stop loss: ₹394
As per Mukherjee, BEL stock has remained in a steady positive trend over the last 11 months, moving within a rising channel that reflects strong buying interest even at higher levels.
It is now consolidating around the lower end of the channel, which makes the current decline look like a healthy pullback and offers a fresh entry opportunity with a favourable risk-reward setup.
The weekly 14-period RSI is at the cusp of issuing a buy signal, having moved above its nine-period average, thus supporting the positive bias.
“We believe the stock is likely to resume its upward move and gradually head towards ₹464 in the coming months, which is the high made in April 2026. On the downside, the ₹400–390 zone is expected to act as a strong support area as it coincides with both the lower band of the rising channel and the 52-week EMA,” said Mukherjee.
HDFC Bank | Buy in the range of ₹810 to ₹835 | Target price: ₹910 | Stop loss: ₹760
Mukherjee said HDFC Bank’s share price has broken out above the last 12-week consolidation range of ₹820 to ₹732, signalling the continuation of the up move and offering a fresh entry opportunity for the next leg.
Key observation in the weekly chart is that the stock has witnessed a faster retracement of the previous decline, as the 8-week decline from ₹820 to ₹732 was completely retraced in just 4 weeks.
A faster retracement in less than half the time signals strength and continuation of the up move.
The weekly 14-period RSI is in an uptrend and is sustaining above its nine-period average, thus validating a positive bias in the stock.
“We expect the stocks to head towards ₹910 over the coming months, being the measuring implication of the last 12 weeks range breakout of ₹820 to ₹732,” said Mukherjee.
ITC | Buy in the range of ₹286 to ₹292 | Target price: ₹320 | Stop loss: ₹270
Mukherjee underscored that the ITC share price has undergone a corrective phase over the past 21 months and is currently consolidating near a crucial support zone.
This technical setup offers a favourable risk-reward profile, positioning the stock for a pullback in the coming months.
Mukherjee pointed out that the stock has major support around the ₹270- ₹290 levels, being the confluence of:
(i) 61.8% retracement of the previous major rally from ₹190 to ₹485.
(ii) A 200-month EMA is placed around ₹260, which has historically acted as a strong demand area for the stock.
(iii) The previous breakout area is placed around the ₹260 to ₹280 levels, which is likely to act as support.
The monthly stochastic has also rebounded from oversold territory and has generated a buy signal, thus supporting positive bias.
“We expect stock to head higher towards ₹320, which is the confluence of the high of February 2026 and 23.6% retracement of the entire decline from ₹485 to ₹275,” Mukherjee.
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Disclaimer: This article 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.
