Shares to buy for the short term: Over the past few sessions, the Indian stock market has been following a trend of ‘selling on rise’ and ‘buying on dips’, as a combination of headwinds and tailwinds continues to keep investors uncertain about the market’s near-term trajectory.
After clocking gains for the last two consecutive sessions, the Nifty 50 fell over a per cent in intraday trade on May 27 on profit booking amid weak global cues, stretched valuations and a lack of fresh immediate triggers.
On the other hand, the medium—to long-term prospects of the domestic market remain healthy amid anticipation of solid economic growth, an above-normal monsoon, a strong influx of retail investors, and easing inflation.
Experts suggest that at this juncture, investors should focus on stocks with strong fundamentals and favourable technical indicators.
Vishnu Kant Upadhyay of Master Capital Services and Mandar Bhojane of Choice Broking recommend buying the following six stocks for the next two to three weeks.
Shares to buy for the short term
Expert: Vishnu Kant Upadhyay, AVP – Research & Advisory, Master Capital Services
ITC | Previous close: ₹442.90 | Target prices: ₹470 and ₹480 | Stop loss: ₹422
ITC has broken out above a key falling trendline resistance, signalling a bullish reversal from its prolonged downtrend.
The stock closed at ₹443 on Monday, surpassing both its 34-day and 200-day EMAs. The recent price action also saw a consolidation breakout, supported by a bullish Supertrend indication at ₹415.
“With improving volume, positive development in MACD and positive structure, ITC appears poised for further gains, potentially targeting 470–480 in the near term. Momentum traders may consider accumulating on dips,” said Upadhyay.
Chennai Petroleum Corporation | Previous close: ₹686.85 | Target prices: ₹765 and ₹780 | Stop loss: ₹634
Chennai Petroleum stock shows a notable bullish structure on the daily chart, with a well-defined inverse head and shoulders pattern, a classic bottom reversal formation signalling a potential trend shift from bearish to bullish.
The neckline resistance around ₹660 has been violated, and the price is attempting to sustain above it. Volume has also picked up near the neckline breakout zone, adding credibility to the move.
“Post-breakout, the pattern’s projected target could extend towards ₹765-780 in the coming weeks,” Upadhyay said.
Rail Vikas Nigam (RVNL) | Previous close: ₹412.05 | Target prices: ₹470 and ₹485 | Stop loss: ₹378
RVNL has decisively broken out above a long-term falling trendline, signalling a strong bullish reversal. The stock closed at ₹412.05 on Monday, firmly above its 34-day and 200-day EMAs at ₹375 and ₹390, respectively, confirming positive price strength.
Rising momentum, as seen in the bullish MACD crossover and RSI hovering near 63, supports the breakout, indicating room for further upside.
This move marks the end of a prolonged consolidation phase and opens the path for higher targets.
“Traders may look for potential upside towards ₹470-485, with strong support now placed near ₹378,” said Upadhyay.
Expert: Mandar Bhojane, Equity Research Analyst, Choice Broking
Housing & Urban Development Corporation (HUDCO) | Previous close: ₹238.26 | Target prices: ₹270 and ₹280 | Stop loss: ₹224
HUDCO stock is showing signs of a potential breakout from an inverted head-and-shoulders pattern, accompanied by a significant increase in trading volume, which indicates a bullish trend.
“If the price closes above the ₹240 level, it could reach short-term targets of ₹270 and ₹280. On the downside, immediate support is at ₹230, presenting a buying opportunity on dips. To manage risk prudently, a stop loss at ₹224 is recommended,” said Bhojane.
Hindustan Construction Company (HCC) | Previous close: ₹31.11 | Target prices: ₹35.50 and ₹36 | Stop loss: ₹29
HCC stock has recently broken out of its daily range, with a significant increase in trading volume, suggesting a potential bullish breakout.
“If the price closes above the ₹31.50 level, it could reach short-term targets of ₹35.50 and ₹36. On the downside, immediate support is at ₹30, offering a buying opportunity on dips. To manage risk effectively, a stop loss at ₹29 is advisable,” said Bhojane.
Computer Age Management Services (CAMS) | Previous close: ₹3,977.70 | Target prices: ₹4,400 and ₹4,500 | Stop loss: ₹3,770
CAMS stock is on the verge of a breakout from an ascending triangle pattern on the daily chart, accompanied by a significant increase in trading volume, indicating a strong bullish trend.
“If the price closes above the ₹4,000, it could potentially reach short term targets of ₹4,400 and ₹4,500. On the downside, immediate support is at ₹3,880, offering a buying opportunity on dips. To manage risk effectively, it is advisable to set a stop loss at ₹3,770,” said Bhojane.
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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.
