Stocks to buy for the short term: The Nifty 50 extended gains for the third consecutive session on Wednesday, February 18, led by IT, FMCG, and financial heavyweights.
The Sensex ended 283 points, or 0.34%, higher at 83,734.25, while the Nifty 50 settled at 25,819.35, up 94 points, or 0.37% amid buying by FIIs.
FIIs bought Indian stocks worth ₹1,154 crore in the cash segment on Wednesday.
Amol Athawale, VP-Technical Research at Kotak Securities, pointed out that after an intraday correction, the Nifty 50 took support near 25,650 and reversed sharply. On the daily charts, it formed a bullish candle.
Athawale believes the short-term support has shifted from 25,500 to 25,600.
“As long as the market is trading above 25,600, the uptrend formation is likely to continue. On the higher side, 25,950-26,000 would act as an immediate resistance zone for the traders. On the flip side, below 25,600, the sentiment could change; below that, the same traders may prefer to exit from the trading long position,” said Athawale.
Stock picks for the short term
Athawale recommends the following three stocks to buy for the next 1-2 weeks. Take a look
ICICI Bank | Buy at ₹1,408.20 | Target price: ₹1,470 | Stop loss: ₹1,370
Athawale pointed out that the ICICI Bank share price is having a breather after its upward move and is in a consolidation phase over the last few sessions. The range-bound structure suggests bullish continuation chart formation.
Moreover, the stock comfortably closed above its short-term moving average. Therefore, the stock is likely to resume its uptrend from the current levels in the coming horizon.
“For the next few trading session ₹1,370 could be the trend decider level for the bulls, if it sustains above the same, we can expect further uptrend towards ₹1,470,” said Athawale.
DLF | Buy at ₹642.45 | Target price: ₹690 | Stop loss: ₹620
Athawale highlighted that after a downward trend from higher levels, the bearish trend paused.
DLF share price has been in a range-bound pattern for quite some time and is trading in a symmetrical triangle on the daily scale.
“The texture of the chart formation suggests bullish momentum likely to resume in the short-term. As long as the stock trades above ₹620, the bullish trend is likely to continue. Above which, the stock could move up to 690 levels,” said Athawale.
Hyundai Motor India | Buy at ₹2,227.60 | Target price: ₹2,370 | Stop loss: ₹2,140
Athawale highlighted that after a declining trend, the Hyundai Motor share price is in the accumulation zone, where it is trading in a range-bound mode on the daily scale.
However, recent bullish activity in the stock is indicating good strength.
The stock is expected to break out of the range and witness the bullish momentum from the current levels with a favourable risk and reward perspective.
“For positional traders, ₹2,140 would be the decisive level. Trading above the same uptrend formation will continue till ₹2,370. However, if it closes below ₹2,140, traders may prefer to exit from trading long positions,” said Athawale.
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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.
