Shares to buy for the short term: The Indian stock market has been in corrective mode for the last few weeks due to the delayed India-US trade deal, the foreign capital outlook, and uninspiring Q1 earnings.
The Sensex and the Nifty 50 have been on losing streak for the last four consecutive weeks, on a weekly basis. So far this month, both indices are down nearly 3 per cent each.
Last Friday, the Nifty 50 fell almost 1 per cent to end at 24,837, falling below its critical support of 25,000.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, underscored that the Nifty’s reversal from 25,250 has brought it precariously close to a breakdown below the previous swing low at 24,850, a development considered negative for market sentiment.
Patel pointed out that the index is now hovering around a crucial rising channel support, and a close below 24,800 could confirm this breakdown, placing the next support at 24,450 in the spotlight.
A breach of the 24,450 may usher in a more pronounced corrective phase. On the upside, recapturing the 25,000 level will be essential for the bulls to regain momentum, said Patel.
The expert further added that from a positioning perspective, the current long-short ratio in index futures has dropped below 15 per cent, signalling a predominance of short bets.
“While this high concentration of shorts increases nervousness, it also raises the odds for a sharp short-covering rally if a positive trigger emerges. Until clearer signals appear, a cautious outlook on the broader time frame is recommended,” said Patel.
Stock picks for the short-term
Jigar Patel recommends buying shares of TCS and Sun Pharma for the next two to three weeks.
Tata Consultancy Services (TCS) | Previous close: ₹3,135.80 | Target price: ₹3,430 | Stop loss: ₹2,965
TCS has been on a downward trajectory since mid-May 2025, consistently forming lower highs and lower lows.
This bearish structure has resulted in a correction of nearly ₹440 — a decline of approximately 12.32 per cent.
However, the stock now stands at a technically significant zone, where both time and price confluence suggest a potential trend reversal.
Historically, key pivot highs and lows in TCS have often occurred within a 25–38 day cycle. Interestingly, this window aligns with both the Lucas number (29) and Fibonacci number (34), adding credence to the time-based support.
Adding to the technical outlook, a bullish Bat Harmonic Pattern is taking shape around the ₹3,080-3,100 mark, coinciding with the S1 quarterly floor pivot, reinforcing the likelihood of a strong base.
Moreover, the MACD histogram is showing signs of exhaustion in negative momentum, with shrinking red bars indicating a possible shift in trend.
“In light of these technical factors, traders may consider initiating long positions in the ₹3,140–3,100 zone in a staggered manner, targeting an upside move toward ₹3,430, with a protective stop loss at ₹2,965 on a daily closing basis,’ said Patel.
Sun Pharmaceutical Industries | Previous close: ₹1,699 | Target price: ₹1,800 | Stop loss: ₹1,650
Sun Pharma has formed a robust base in the ₹1,650–1,680 range, coinciding with the S3 Camarilla monthly pivot, signalling a key support zone.
This area also aligns with a rising trendline and the lower median line of a pitchfork, creating a compelling technical confluence that could attract renewed buying interest.
“The multiple support factors at play increase the probability of a bullish reversal from current levels. A decisive move above this consolidation zone could open the door for a fresh leg higher,’ said Patel.
Patel suggests an entry zone of ₹1,705–1,695 for the stock, with a target price of ₹1,800, and a stop loss of ₹1,650 on a daily closing basis.
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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.
