Stocks to buy for short term: The Indian stock market benchmarks- the Sensex and the Nifty 50- have been witnessing healthy gains for the last three sessions, largely due to short covering in banking and IT heavyweights ahead of the September quarter (Q2FY26) results.
The Sensex has gained over 1,500 points in three sessions, while the Nifty 50 has reclaimed the psychologically significant 25,000 mark.
“The rally was supported by a combination of robust domestic triggers and encouraging global factors. Positive business updates from leading private banks bolstered sentiment, while the upward revision of CGHS rates added traction to healthcare stocks,” said Ajit Mishra, the SVP of research at Religare Broking.
“Additionally, festive season demand and optimism around upcoming IPOs kept the undertone constructive. Globally, optimism surrounding potential US Fed policy easing and strength in Asian markets fueled risk-on appetite,” said Mishra.
Experts anticipate the market will experience some volatility in the short term due to the upcoming earnings season. They suggest betting on stocks with favourable fundamental and technical indicators.
Vishnu Kant Upadhyay of Master Capital Services and Hardik Matalia of Choice Equity Broking recommend six stocks to buy for the next 2-3 weeks. Take a look:
Stock picks for short term
Expert: Vishnu Kant Upadhyay, Assistant Vice President – Research & Advisory at Master Capital Services
AIA Engineering | Buy at ₹3,178 | Stop loss: ₹3,050 | Target prices: ₹3,450 and ₹3,550
According to Upadhyay, AIA Engineering is exhibiting early signs of a bullish reversal, trading within a falling wedge pattern, which typically signals a trend reversal after downtrends.
The stock has moved decisively above the 50-day EMA, indicating improving momentum and buyer conviction.
The formation of higher highs and higher lows suggests a structural shift towards accumulation.
“With strong support near the lower trendline and resistance at the upper boundary, the risk-reward setup remains favourable for potential upside,” said Upadhyay.
Bharat Bijlee | Buy at ₹3,290 | Stop loss: ₹3,090 | Target prices: ₹3,720 and ₹3,800
Upadhyay underscored that Bharat Bijlee has broken out of a symmetrical triangle pattern on the daily chart, signalling a bullish reversal after a period of consolidation.
The stock has reclaimed key short and medium-term moving averages, highlighting renewed buying interest.
Momentum indicators are supportive, with the RSI rising and the MACD turning positive, reflecting a strengthening bullish sentiment.
“A pickup in volumes during the breakout adds conviction, while ADX above 25 suggests increasing trend strength, reinforcing the constructive outlook ahead,” said Upadhyay.
APL Apollo Tubes | Buy at ₹1,742 | Stop loss: ₹1,680 | Target prices: ₹1,820 and ₹1,880
Upadhyay pointed out that APL Apollo Tubes has successfully broken out of a multi-week consolidation phase, signalling the continuation of its positive uptrend.
The stock is trading above all key moving averages (short and medium-term EMAs), validating strong underlying strength.
The recent upward move is supported by an increase in trading volume, which suggests fresh buying interest and accumulation.
“This strong price structure and breakout from consolidation reinforce a robust bullish view for APL Apollo Tubes,” said Upadhyay.
Expert: Hardik Matalia, Derivative Analyst, Choice Broking
SBI Cards and Payment Services | Buy at ₹902.60 | Stop loss: ₹860 | Target prices: ₹985 and ₹1,000
According to Matalia, after consolidating after a pullback from its recent swing high, SBI Card is showing a healthy pause before the next potential up move.
On the daily chart, the stock is forming a cup and handle pattern — a bullish continuation setup that often signals a breakout if buying pressure continues.
“Trading volumes have stayed steady, suggesting accumulation. A strong move above ₹910 would confirm the breakout and could push the stock towards ₹980– ₹1,000 in the near term,” said Matalia.
The RSI at 65.45 shows a positive crossover with an upward curve, reflecting strengthening momentum.
“With the stock trading above all key moving averages, the overall structure remains bullish. Traders can consider buying around ₹902.60 with a stop-loss at ₹860 to manage risk effectively,” Matalia said.
AU Small Finance Bank | Buy at ₹762.95 | Stop loss: ₹720 | Target prices: ₹840 and ₹860
Matalia pointed out that AU Small Finance Bank, after a strong rally from lower levels, has seen some retracement from its recent highs.
This price action has formed a flag and pole pattern on the daily chart, a bullish continuation setup, and the stock has now broken out of this formation.
Trading volumes have remained consistent, supporting the breakout.
The stock has recently taken support from its key moving averages and is comfortably trading above all of them, underscoring its bullish structure.
The RSI, currently at 63.85, is trending strongly upward, reflecting improving momentum.
“If AU Small Finance Bank manages to hold above the breakout level, it could see further upside movement. Traders may consider buying at ₹762.95 with a stop-loss at ₹720, aiming for a near-term target of ₹840– ₹860,” said Matalia.
Can Fin Homes | Buy at ₹803.55 | Stop loss: ₹763 | Target prices: ₹880 and ₹895
Matalia underscored that Can Fin Homes, after consolidating for the past few weeks, is forming a small rounded bottom pattern on the daily chart.
The stock has delivered a strong breakout from this range, backed by a notable increase in trading volumes, signalling genuine buying interest.
Can Fin Homes is trading comfortably above all its key moving averages, reinforcing a solid technical foundation.
Additionally, the RSI stands at 64.56 with a strong upward trend, indicating strengthening momentum and positive sentiment.
“If the stock manages to sustain above the breakout level, it could continue its bullish momentum in the sessions ahead. Traders can consider buying the stock at the current price of ₹803.55, with a stop loss placed at ₹763 to manage downside risk, targeting an upside range of ₹880– ₹895,” said Matalia.
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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.
