Stocks to buy for the short term: The domestic market benchmark Nifty 50 snapped its eight-session losing streak on Wednesday, October 1, after the Reserve Bank of India (RBI) maintained a status quo on policy rates and stance and projected a favourable growth-inflation outlook of the country till Q1FY27.
The Sensex ended the day 716 points, or 0.89 per cent, higher at 80,983.31, while the Nifty 50 settled at 24,836.30, up 225 points, or 0.92 per cent. The broader markets also participated in the recovery, as both midcap and smallcap indices gained over a per cent each.
The Nifty Bank and Financial Services indices rose 1.30 per cent and 1.38 per cent, respectively.
“The rebound was fueled by the Reserve Bank of India’s Monetary Policy Committee keeping the repo rate unchanged at 5.5 per cent, in line with expectations, while signalling confidence in the domestic economic outlook. Additional support came from easing crude oil prices and sustained strength in global equities,” said Ajit Mishra, SVP of research at Religare Broking.
Mishra underscored stability in the rupee against the US dollar and a decline in India VIX further reflected subsiding near-term volatility, encouraging incremental risk-taking.
However, participants should avoid reading too much into a single-day rebound and wait for stability above 24,900 to confirm a sustained recovery, Mishra said. Immediate support is now placed in the 24,600–24,700 zone.
“For the next session, focus will remain on rate-sensitive sectors, particularly banking, financials, and auto, while metals and energy could also offer selective buying opportunities. Amid all, traders should avoid getting carried away and stick to a stock-specific approach,” Mishra said.
Mishra suggests buying the following three stocks for the next one to two weeks as he sees a favourable technical setup for them.
Stock picks for the short term
Hindustan Aeronautics (HAL) | Last traded price (LTP): ₹4,803.40 | Buy | Target price: ₹5,300 | Stop loss: ₹4,550
Mishra observed that after defending its long-term average during the corrective phase, HAL rebounded sharply, delivering notable gains.
To consolidate these advances, the stock has been trading in a tight range just above its short-term average, reflecting healthy digestion of recent momentum.
It is now approaching a breakout from a descending trendline, which would mark the completion of its corrective phase.
The technical setup is further strengthened by rising volumes, adding conviction to the improving price structure.
“The broader defence sector is also witnessing a synchronised revival, and as a sector leader, HAL is well positioned to benefit meaningfully,” said Mishra.
“With an improving price structure and volume confirmation, the stock looks poised for an upside move towards ₹5,150 initially, followed by ₹5,300,” Mishra said.
State Bank of India (SBI) | LTP: ₹864.10 | Buy | Target price: ₹930 | Stop loss: ₹830
Mishra pointed out that the banking index is showing signs of renewed strength, with PSU banks taking the lead, and SBI emerging as a clear outperformer.
After consolidating in a narrow range for nearly five months, the stock has registered a decisive breakout, supported by a sharp rise in volumes, highlighting strong institutional participation.
This move signifies growing confidence in the counter and indicates that supply has been absorbed efficiently during the consolidation phase.
“SBI is now trading well above its moving average ribbon, which has aligned in a bullish sequence, further validating the momentum. The overall price structure suggests that the
corrective phase has ended, paving the way for a sustained uptrend. Fresh long positions can be initiated at defined levels,” said Mishra.
Jindal Steel | LTP: ₹1,065 | Buy | Target price: ₹1,170 | Stop loss: ₹1,010
“We have been observing consistent strength in the metal space, with Jindal Steel standing out as one of the strongest performers within the pack,” said Mishra.
The stock has been displaying notable relative strength against its peers and is currently forming a base-on-base structure, which is often seen as a sign of sustained accumulation by market participants.
This constructive price action suggests that buyers are willing to absorb supply at higher levels, thereby maintaining the trend.
The stock is holding firmly above all its key moving averages, which are aligned positively, further validating the ongoing bullish momentum.
“With improving volumes and a strong price structure, the stock now appears well-positioned for a breakout, potentially marking the continuation of its prevailing uptrend,” said Mishra.
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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.
