Stocks to buy for the short term: The domestic stock market witnessed strong buying across segments on Wednesday, with the benchmarks, the Sensex and the Nifty 50, jumping over 1% each, despite rising oil prices and escalating tensions between the US and Iran.
Market sentiment was supported by strong industrial output data, which signalled the Indian economy would remain resilient despite increased geopolitical risks. The Index of Industrial Production (IIP) grew 7.3% year-on-year in June, a six-month high.
However, the current setup is challenging. Crude oil prices are above $90 per barrel, as tensions between the US and Iran have been escalating. As per media reports, US President Donald Trump has vowed forceful retaliation after Iranian ballistic missiles targeted US forces in Jordan.
On the technical front, the Nifty 50 settled above the 20-day SMA (simple moving average) resistance on Wednesday, which is broadly positive.
According to Amol Athawale, VP – Technical Research at Kotak Securities, the 20-day SMA at 24,100 and 24,150 will be crucial support zones, and as long as the index remains above these levels, the prevailing uptrend may continue.
On the upside, the index may advance to 24,400–24,500. However, if it slips below 24,100, the uptrend could become vulnerable, said Athawale.
Stock picks for the short term
Amol Athawale recommends buying the following three stocks for the next 1-2 weeks:
JSW Steel | Previous close: ₹1,276.60 | Target price: ₹1,360 | Stop loss: ₹1,230
Athawale pointed out that after the correction from the higher levels, JSW Steel’s share price had been trading in a range-bound mode. However, it has given a range breakout move in the recent session.
“The closing above the resistance line indicates further bullish momentum to continue from the current levels. For the next few trading sessions, ₹1,230 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹1,360,” said Athawale.
Sun TV Network | Previous close: ₹512.85 | Target price: ₹540 | Stop loss: ₹498
Athawale pointed out that after its declining trend, Sun TV Network’s share price reversed from its important demand zone.
The stock has formed a double bottom chart pattern on the daily scale, and it is in a steady uptrend.
The technical indicator, like RSI, is also indicating a further uptrend from current levels, which could boost the bullish momentum in the coming horizon.
“As long as the stock is trading above ₹498, the bullish texture is likely to continue. Above which, the stock could move up to ₹540,” said Athawale.
Max Financial Services (MFSL) | Previous close: ₹1,515.10 | Target price: ₹1,630 | Stop loss: ₹1,465
After a short-term price correction, the MFSL share price is near its multiple support zone.
The incremental volume activity near the support zone indicates that the downside is restricted.
“The stock is expected to rebound and witness the bullish momentum from the current levels,” said Athawale.
“For positional traders, ₹1,465 would be the decisive level. Trading above the
same uptrend formation will continue till ₹1,630. However, if it closes below ₹1,465, traders may prefer to exit from trading long positions,” said Athawale.
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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.
