Shares to buy for the short term: The Indian stock market has been lacklustre over the last few sessions. The benchmark Nifty 50, after falling 0.40 per cent in the previous session, dropped almost 1 per cent to hit an intraday low of 24,931.40 during the session on Friday, July 18, looking set to extend losses to the third consecutive week.
Ajit Mishra, SVP of research at Religare Broking, pointed out that global uncertainty and a muted start to the Q1 earnings season are weighing on investor sentiment, even though sustained liquidity inflows are helping to cushion the downside.
“The current divergent trend, while the benchmark index is under pressure, is mainly due to weakness in heavyweight IT stocks. At the same time, rate-sensitive sectors like auto, realty, and select banking, along with continued interest in defensives like FMCG and pharma, are not only limiting the losses but also offering ample long-side trading opportunities. The resilience in the broader market further adds to this positive undertone,” said Mishra.
“We recommend aligning positions accordingly, with a focus on stock selection and risk management, as the current market tone is likely to persist,” Mishra said.
Stock picks for the short term
Mishra suggests buying shares of ITC, Hero MotoCorp, and CG Power and Industrial Solutions, for the short term.
ITC | LTP: ₹423.95 | Target price: ₹452 | Stop loss: ₹410
After a prolonged period of underperformance, the FMCG sector is showing signs of revival, and ITC is trading in sync with the move.
The stock has formed a strong base near the ₹415 support zone and has recently reclaimed its 200-day EMA, indicating a shift in long-term sentiment.
This technical development, along with the stock trading above its key short-term moving averages, suggests a bullish structure.
Moreover, ITC has shown relative outperformance against both the broader market and select FMCG peers, signalling increasing interest.
“Volume patterns indicate steady accumulation, adding confidence to the ongoing move. The broader sectoral strength, combined with ITC’s favourable technical setup, makes it a compelling candidate for fresh long trades,” said Mishra.
Hero MotoCorp | LTP: ₹4,443.60 | Target price: ₹4,800 | Stop loss: ₹4,200
Hero MotoCorp is displaying strong signs of a bullish reversal after a prolonged corrective phase.
The stock initially witnessed a sharp decline but has since formed a classic rounded bottom pattern between the ₹3,400– ₹4,600 zone.
“The stock is currently consolidating near the upper end of this reversal range, with the 20-day EMA providing consistent support, and volumes indicating steady accumulation. A decisive breakout above ₹4,600 would confirm the reversal and open the path for a sustained rally,” said Mishra.
From a sectoral perspective, the auto space is gaining momentum as part of the rate-sensitive pack, and Hero MotoCorp is well-positioned to capitalise on this trend.
“The overall chart structure remains constructive, and as long as the ₹4,200 support zone is intact, traders may consider initiating fresh long positions for potential upside,” said Mishra.
CG Power and Industrial Solutions Limited |LTP:689.35 | Buy |Target : 740| Stop-loss:665
CG Power has convincingly ended its corrective phase, as evidenced by a breakout above the falling trend line and a shift from a lower-high, lower-low structure to a base formation around the ₹665– ₹710 zone.
This prolonged consolidation phase, supported by price stability and the 20-day EMA acting as dynamic support, signalled strong accumulation.
The stock has since resumed its upward momentum, breaking out from this accumulation zone with a surge in volumes, indicating renewed buying interest. Importantly, this move aligns with the neckline of the earlier breakout zone and is supported by a confluence of key moving averages, adding strength to the bullish structure.
The recent breakout from the buying pivot confirms the end of consolidation and marks the beginning of a fresh leg of the uptrend.
“Given the technical setup and strong volume action, traders may consider fresh long positions as per the mentioned levels,” said Mishra.
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Disclaimer: This story is for educational purposes only. 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.
