Stocks to buy for short term: Easing geopolitical tensions, foreign capital inflow and better-than-expected Q4 earnings kept the Indian stock market up last week. The benchmark Nifty 50 rose over 4 per cent for the week ended May 16, reclaiming the 25,000 mark.
On Monday, however, the index traded lacklustre in the morning session. Around 10:30 AM, it was 14 points up at 25,034.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that since the April 2025 low of 21,800, the Nifty 50 has surged nearly 3,300 points with minimal retracement — a strong uptrend powered by renewed FII inflows and calming global cues.
Patel further said that on the technical front, a bullish golden crossover has been confirmed on the daily chart, where the 50-DEMA has crossed above the 200-DEMA — a long-term positive signal.
However, Patel emphasised that such crossovers often see brief mean reversions before the larger trend resumes. He said currently, both moving averages lie between 23,500 and 23,800 — levels that may be retested if the market cools off.
“The Nifty 50 is now testing the 161.8 per cent Fibonacci extension of the previous move — a classic golden ratio that could act as near-term resistance. With this, we expect 25,300 to act as an immediate hurdle. A failure to sustain above this level may trigger some profit-booking,” said Patel.
“On the downside, support is seen in the 24,800–24,500 zone. Traders are advised to tighten stop losses, avoid aggressive longs at current levels, and look for opportunities on dips to enter fresh positions,” Patel said.
Stock picks for the short term
Jigar Patel recommends buying shares of Cyient, Tata Technologies and JSW Energy for the next two to three weeks.
Cyient | Previous close: ₹1,304.30 | Target price: ₹1,600 | Stop loss: ₹1,150
Cyient is approaching a significant technical inflection point, where a convergence of multiple technical factors suggests a potential trend reversal.
One of the most critical signals is the alignment with a 34-week time cycle—a key Fibonacci number often associated with major turning points in harmonic trading. This temporal synchronisation adds weight to the possibility of a directional change.
Supporting this, Fibonacci ratio analysis of two corrective price legs—one falling 32.18 per cent (A to B) and the other 49.43 per cent (C to D)—reveals a compelling harmonic relationship.
The ratio of 49.43/32.18 yields 1.536, which is close to the Golden Ratio of 1.618, while the inverse yields 0.651, approximating the key 0.618 level—both central to harmonic analysis.
Further reinforcing this view is the price symmetry: the absolute drop from A to B is ₹778.75, while the drop from C to D is ₹1059.55, giving ratios of approximately 1.36 and 0.734, closely matching √1.618 (1.27) and √0.618 (0.786), respectively.
These findings indicate a structurally sensitive zone where the price may stabilise or reverse.
On the daily chart, the stock has completed a bullish inverse head and shoulders pattern and confirmed a breakout—a classic reversal signal in technical analysis.
“Considering this strong confluence of time, price, and pattern structure, a long position is advisable in the ₹1,280– ₹1,300 range, targeting ₹1,600, with a stop loss at ₹1,150. The setup offers an attractive risk-reward ratio, underpinned by solid harmonic and structural evidence,” said Patel.
Tata Technologies | Previous close: ₹750.90 | Target price: ₹825 | Stop loss: ₹695
Tata Technologies is approaching a critical technical juncture marked by the confluence of key time cycles and Fibonacci ratios, suggesting a potential trend reversal.
The ongoing setup aligns with a 35–36-week time cycle, which is closely related to the Fibonacci number 34—a level often linked to cyclical market turning points.
Analysing the corrective structure, the stock witnessed a 30 per cent drop from point A to B, followed by a steeper 47.45 per cent correction from C to D.
The ratio of these moves stands at 1.58, nearly matching the Golden Ratio (1.618), while the inverse, 0.632, closely approximates its reciprocal (0.618).
Examining price symmetry, the decline from A to B amounted to ₹416.60, while the C–D leg corrected by ₹539, yielding a ratio of around 1.27, equivalent to the square root of 1.618.
This move also aligns with the 0.786 retracement level, which is the square root of 0.618, enhancing the harmonic confluence.
“Given this strong technical setup, a long position is recommended in the ₹735– ₹750 zone, with an upside target of ₹825 and a stop loss at ₹695 on a daily closing basis,” said Patel.
JSW Energy | Previous close: ₹503.85 | Target price: ₹575 | Stop loss: ₹475
JSW Energy has recently formed multiple bottoms in the ₹420– ₹460 range, indicating a strong support zone.
This area also aligns with the 61.8 per cent Fibonacci retracement of the entire rally from February 2023 to September 2024, adding technical significance.
Additionally, a bullish divergence is visible on the daily RSI, and the stock has broken a prevailing bear trendline, reinforcing the potential for upward momentum.
“Based on this confluence of signals, a long position is recommended in the ₹500– ₹505 zone. The upside target is ₹575, with a stop loss placed below ₹475 on a daily closing basis to manage risk effectively,” said Patel.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
