Stocks to buy for the short term: The Indian stock market ended slightly lower on Monday due to profit booking. The Nifty 50 ended below 25,100 but managed to save the psychologically important 25,000 mark.
Market sentiment is gradually improving, driven by indications of potential trade deals with the US and European Union (EU), a healthy domestic macro outlook, and domestic reforms.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, from a technical standpoint, the Nifty 50 is inching closer to a breakout phase.
The daily RSI sustaining above 60 underscores underlying strength, and a close beyond 25,150 could pave the way for a move towards the recent high of 25,650.
On the downside, Patel said the 24,800–24,750 zone is seen as immediate support, with the 24,400–24,350 pocket acting as a more reliable demand area.
“As long as these zones hold firm, the market setup favours a ‘buy on dips’ approach. In essence, while Nifty 50 exhibits momentum, a stronger contribution from banks will be vital for the rally to broaden further,” said Patel.
Stock picks for the short-term
Jigar Patel recommends buying shares of Coal India, Cochin Shipyard, and ITI for the next two to three weeks.
Coal India | Previous close: ₹394.75 | Target price: ₹430 | Stop loss: ₹372
According to Patel, Coal India has displayed a strong base formation in the ₹350–380 zone, providing a solid foundation for the next leg of its uptrend.
Recent price action shows a clear trendline breakout, supported by bullish signals from the MACD histogram divergence, indicating improving momentum.
“This technical setup suggests that the stock is well-positioned for further upside if buying interest continues. Traders are advised to consider long positions in the ₹395–390 range, with a potential target of ₹430 in the coming sessions,” said Patel.
“On the risk management front, a strict stop loss should be placed at ₹372 on a closing basis. Sustained trade above key support levels strengthens the bullish bias for the near term,” said Patel.
Cochin Shipyard | Previous close: ₹1,807.80 | Target price: ₹1,910 | Stop loss: ₹1,640
Patel underscored that Cochin Shipyard has established a strong technical base with a triple-bottom pattern in the ₹1,650–1,700 zone, reinforcing investor confidence at lower levels.
The stock has now given a trendline breakout, further validated by a bullish divergence on the MACD histogram, signalling a likely shift in momentum.
Adding to the positive setup, the price has managed to close above the R4 Camarilla monthly pivot—a crucial breakout level—indicating strength in the current trend.
“Given this technical alignment, traders can look to initiate long positions in the ₹1,750–1,720 zone, eyeing an upside target of ₹1,910. A strict stop loss should be maintained at ₹1,640 on a closing basis to manage risk effectively,” said Patel.
ITI | Previous close: ₹322.55 | Target price: ₹340 | Stop loss: ₹292
Patel pointed out that ITI is showing encouraging signs of strength after successfully holding near its previous demand and breakout zone, reinforcing a solid support base.
The stock has recently closed marginally above the R4 Camarilla monthly pivot, a breakout level that often signals the continuation of an uptrend.
On shorter timeframes, hourly charts are reflecting bullish divergence, further validating the possibility of momentum picking up in the near term.
This confluence of technical indicators suggests an attractive risk-reward setup.
“Traders may consider initiating long positions in the ₹310–306 range, aiming for an upside target of ₹340. To protect against downside risk, a stop-loss should be maintained below ₹292 on a daily closing basis,” 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.
