Stocks to buy for short term: The Indian stock market is expected to remain volatile this week, reacting to the news flows about US-Iran talks, crude oil price movement, and macroeconomic indicators.
The benchmark Nifty 50, which ended at 24,176 on Friday, 8 May, has been in the green for the last two consecutive weeks amid signs of easing geopolitical tensions.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, from a technical perspective, the Nifty has confirmed a breakout above the 24,300 zone and briefly crossed the important 24,400 hurdle.
Patel highlighted that following the breakout, the index underwent a healthy pullback and successfully retested the breakout area, indicating that the broader bullish structure remains intact. The current setup resembles a symmetrical triangle breakout, which continues to support a positive market outlook.
“Going forward, a sustained move above 24,400 could further strengthen bullish momentum and open the gates towards 24,600 and 24,800 levels. On the downside, a breach below 23,900 may weaken the breakout structure and result in renewed consolidation towards the 23,700 zone,” said Patel.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:
CDSL | Buying range: ₹1,260 to ₹1,230 | Target price: ₹1,380 | Stop loss: ₹1,155
According to Patel, CDSL has corrected and retraced to the 61.8% level of its recent rally, indicating a healthy pullback within a bullish structure.
The internal retracement (61.8%), external retracement (2.618%), and APP (1.27) have created a strong confluence zone, leading to price consolidation.
Meanwhile, RSI and MACD are showing early signs of reversal from key support levels, suggesting potential upside.
“Traders may consider buying in the ₹1,260– ₹1,230 zone, with a stop loss at ₹1,155 and a target of ₹1,380,” said Patel.
Patanjali Foods | Buying range: ₹465 to ₹455 | Target price: ₹510 | Stop loss: ₹435
Patel said Patanjali Foods has recently completed its equal-length correction of nearly 132 points, as highlighted in the chart below.
The correction zone also coincides with the important 78.6% Fibonacci retracement level, indicating the presence of strong support near current levels.
Following the recent decline, the stock is showing signs of stabilisation, while technical indicators are gradually turning in Favor of the bulls, suggesting improving momentum and potential upside recovery.
“The overall price structure indicates a possibility of a fresh upward move if the stock sustains above its support zone. Hence, traders may consider buying the stock in the ₹465 to ₹455 zone with a strict stop loss at ₹435. On the upside, the stock has the potential to move towards the ₹510 target in the near term,” said Patel.
Kalyan Jewellers India | Buying range: ₹426 to ₹420 | Target price: ₹470 | Stop loss: ₹398
Patel highlighted that Kalyan Jewellers India has developed a bullish AB=CD harmonic pattern and has formed a strong base near ₹400, indicating accumulation at lower levels.
The stock has also shown signs of stability after a corrective phase, while technical indicators such as RSI and MACD are gradually turning positive, suggesting improving momentum and renewed buying interest.
Additionally, the price structure indicates the possibility of a fresh upward move if the stock sustains above the immediate support zone.
“Considering the favourable risk-reward setup and improving technical structure, traders may consider accumulating the stock in the ₹426– ₹420 range. A strict stop loss at ₹398 should be maintained, while the upside potential remains open towards the ₹470 target in the near term,” said Patel.
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Disclaimer: This story is for educational purposes only. 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.
