Stocks to buy for the short term: The Indian stock market witnessed healthy buying interest in the morning trade on Friday, December 12. Benchmark Nifty 50 reclaimed the 26,000 mark, while the Sensex jumped over 450 points to hover near 85,300.
In the previous session, the Sensex closed 427 points, or 0.51%, higher at 84,818.13, while the Nifty 50 settled at 25,898.55, up 141 points, or 0.55%, after the US Federal Reserve cut interest rates by 25 basis points.
However, the rupee’s fall to a record low against the US dollar remains a key concern. The domestic currency fell to a record low of 90.55 per dollar on Friday.
Ajit Mishra, SVP of Research at Religare Broking, said it may still be premature to celebrate this rebound in the domestic market.
“A sustained move above the first key hurdle—the 20-DEMA around 25,950—is essential to confirm further recovery; failure to do so could trigger renewed profit-taking. Participants should closely track the performance of banking and IT, which will be crucial for market direction,” said Mishra.
“Global cues, especially from the US markets, will also remain influential. On the sectoral front, several stocks within private banking, auto, metals and pharma continue to exhibit relative strength, while pockets of weakness in other sectors still offer opportunities on the short side. Traders should position selectively with a strong emphasis on risk management,” said Mishra.
Stock picks for the short term
Mishra suggests buying the following three stocks for the next one to two weeks as he sees a favourable technical setup for them.
Kotak Mahindra Bank | Buy | Target price: ₹2,360 | Stop loss: ₹2,090
A mixed trend is observed within the private banking majors, and Kotak Mahindra Bank is among the top-performing names based on the recent price action.
The stock had been consolidating for over a month within a defined range above its trend line support, forming a cup and handle pattern, which acts as a continuation pattern.
“It has now confirmed a breakout from this broader consolidation zone, supported by stability above key short-term moving averages,” said Mishra.
“Given these technical setups, the stock is well-positioned for further upside. Traders may consider accumulating at the recommended levels,” Mishra said.
HDFC Life Insurance Company | Buy |Target price: ₹822 | Stop loss: ₹750
Mishra pointed out that HDFC Life Insurance Company has rebounded strongly from its multi-month support zone and has convincingly broken above the declining trendline.
Post-breakout, the stock has been consolidating above the neckline, which coincides with the 100-day EMA—indicating healthy accumulation.
A positive MACD crossover and the RSI holding above 60 further validate the improving momentum.
“The stock continues to sustain with supportive volumes, reflecting active buying interest among short-term participants. A long position can be considered at current levels, with a potential move toward retesting its record highs,” said Mishra.
Sun Pharma | Buy | Target price: ₹1,930 | Stop loss: ₹1,745
Mishra pointed out that the pharma index is witnessing a strong breakout attempt after it spent over a year in a corrective phase.
Among the leading pharma stocks, Sun Pharma is demonstrating relatively higher strength, having already completed its correction with a decisive trendline breakout and a steady upward move.
“The recent marginal dip toward the support zone of the short-term moving average (20 DEMA) offers a fresh buying opportunity for those who missed the earlier entry,” said Mishra.
“Traders may consider accumulating the stock while adhering to the specified stop-loss and target levels,” Mishra said.
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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.
