Stocks to buy for the short term: Nifty 50, the benchmark of the Indian stock market, extended gains to the third consecutive week last Friday despite escalating tensions between India and Pakistan. The Nifty 50 rose about 1.3 per cent last week amid growing optimism towards a potential trade deal between the US and China even as the India-Pakistan factor capped the gains.
Healthy macroeconomic indicators, sustained foreign capital inflow, weakness in the dollar index and largely stable Q4 earnings supported the domestic market.
The Indian stock market is enjoying strong tailwinds at the current juncture. However, the India-Pakistan conflict remains a key overhang. Given this risk, experts suggest that investors exercise caution in stock selection and focus on companies with strong fundamentals and favourable technical indicators.
Stock picks for the short term
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends buying shares of Honasa Consumer, Wipro and Godrej Properties for the next two to three weeks.
Honasa Consumer | Previous close: ₹252.53 | Target price: ₹300 | Stop loss: ₹224
Honasa Consumer has recently staged a breakout following a prolonged consolidation phase within the ₹200–235 range, signalling a resurgence in bullish momentum.
Notably, this consolidation occurred around the R3–S3 levels of the monthly Camarilla pivot, a technically significant zone that adds weight to the bullish narrative.
Furthermore, a bullish divergence on the weekly RSI lends additional confirmation to the potential for sustained upward movement.
“Given this favourable breakout structure and supporting indicators, traders are advised to consider long positions in the ₹245–255 range, with a stop loss at ₹224 on a closing basis. The stock looks poised to advance toward an upside target of ₹300 in the coming sessions,” said Patel.
Wipro | Previous close: ₹242.87 | Target price: ₹265 | Stop loss: ₹227
Over the past three weeks, Wipro has demonstrated consistent support near the ₹200 high-low band on the weekly chart, indicating strong buying interest in the ₹230–240 zone.
This accumulation area also coincides with the S1 Floor yearly pivot, lending additional technical strength to the support level. On the daily timeframe, a bullish divergence on the RSI further reinforces the positive bias and signals a potential reversal in momentum.
“Considering these supportive signals, traders are advised to initiate long positions in the ₹236–244 range, with a stop loss at ₹227 on a closing basis. The stock appears well-positioned to move toward an upside target of ₹265 in the near term,” Patel said.
Godrej Properties | Previous close: ₹2,249.30 | Target price: ₹2,450 | Stop loss: ₹2,100
Godrej Properties has recently delivered a decisive breakout backed by strong volumes, following an extended consolidation phase within the ₹1,900–2,200 range.
A triple bottom formation was observed near the ₹1,900 mark, accompanied by a positive divergence on the RSI, suggesting bullish momentum.
This ₹1,900 level also coincides with a significant historical breakout level, which is now acting as a key support. Interestingly, this support level aligns with the S3 Camarilla quarterly pivot, further reinforcing its strength, as highlighted in the accompanying chart.
“Given these technical signals, we recommend initiating long positions in the ₹2,200–2,250 range, targeting a potential upside towards ₹2,450. A stop loss should be maintained below ₹2,100 on a daily closing basis to manage risk effectively,” said Patel.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
