Stocks to buy for the short term: Higher oil prices amid fresh escalation in tensions between the US and Iran and rising bond yields in the US after Federal Reserve Chair Kevin Warsh’s hawkish tone at the Jackson Hole symposium weighed on stock market sentiment, driving the benchmarks, the Sensex and the Nifty 50 lower by up to 0.80% in morning trade on Monday, 31 August.
Iran launched strikes early Monday after US forces struck Iranian rocket launchers on the Strait of Hormuz in their first military action in a month on Sunday. This drove Brent crude futures up by 3%, bringing them near $91 per barrel.
On the technical front, the Nifty briefly breached below the crucial 24,000 mark during Monday’s session, hitting an intraday low of 23,994.
Technically, the index remains range-bound between 24,000 and 24,400.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, 24,000 continues to offer strong support, backed by the daily gap area, rising trendline and 61.8% Fibonacci retracement.
Patel recommends a buy-on-dips strategy, with 24,100–24,000 as the key support zone, as he believes the broader structure remains positive as long as 23,600 holds on a closing basis.
On the upside, 24,400 remains the immediate hurdle. A sustained breakout above this level could open the way towards 24,600–24,750, followed by our immediate target of 25,000, said Patel.
For Nifty Bank, a decisive breakout above 58,200 could trigger fresh upside momentum, while 57,000 remains the crucial support. We maintain a bullish bias and recommend buying on dips above 57,000, Patel said.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:
Genus Power Infrastructures | Buy between ₹350 to ₹340 | Target price: ₹375 | Stop loss: ₹330
Patel highlighted that the Genus Power share price is showing a positive technical setup, supported by a breakout in the weekly RSI and a breakout above the weekly Ichimoku Cloud.
The RSI breakout indicates improving momentum and suggests that buying interest is strengthening on the higher time frame.
At the same time, the move above the Ichimoku Cloud signals a potential shift from a consolidation phase toward a bullish trend.
“The ₹350–340 zone can be considered a favourable entry range, offering a better risk-reward setup. A strict stop-loss should be maintained at ₹330 to manage downside risk in case the breakout fails,” said Patel.
“On the upside, the stock can potentially move towards the ₹375 target. Traders should monitor volume and price action for confirmation and avoid chasing the stock significantly above the recommended buying zone,” Patel said.
Delivery | Buy between ₹470 to ₹460 | Target price: ₹515 | Stop loss: ₹440
According to Patel, Delivery share price is showing a positive technical setup, with the stock taking strong support from a major bullish trendline along with the 200-day SMA.
The stock has also formed a hidden bullish divergence, indicating the possibility of renewed upward momentum.
“The ₹470–460 zone can be considered a favourable buying range, as the confluence of trendline and moving-average support provides a strong technical base. A strict stop-loss should be maintained at ₹440 on a closing basis to manage downside risk,” said Patel.
“On the upside, the stock can potentially move towards the ₹515 target. Traders should monitor price action around the support zone and avoid chasing the stock if it moves significantly above the recommended entry range,” Patel said.
Hindustan Zinc | Buy between ₹625 to ₹615 | Target price: ₹700 | Stop loss: ₹580
Patel said Hindustan Zinc share price is showing a strong technical setup, with a breakout visible on the weekly price chart, indicating a potential shift toward a sustained bullish trend.
The breakout suggests that the stock has moved above an important resistance zone, supported by improving buying interest.
Along with the price breakout, the weekly RSI has also broken out, confirming strengthening momentum and reducing the probability of a false breakout.
“Traders can consider buying the stock in the ₹625–615 range, preferably on dips toward the recommended entry zone. The stop-loss should be maintained at ₹580 on a closing basis to manage downside risk,” said Patel.
“If the bullish structure sustains, the stock can potentially move toward the ₹700 target in the coming sessions,” Patel said.
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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.
