Stocks to buy for short term: Rising crude oil prices, weak rupee, FII selling, and geopolitical concerns weighed heavily on the Indian stock market last week, dragging the benchmarks, the Sensex and the Nifty 50, down 2.7% and 2.2%, respectively.
The Nifty 50, which settled at 23,643.50 on Friday, 15 May, has broken below the important 23,900 support, retracing nearly 50% of its previous rally.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, believes the key resistance for this week is placed near 23,850.
“A sustained move above this level may trigger fresh upside towards 24,500–25,000. On the downside, support is placed near 23,500, below which Nifty may retest 23,300–23,100 levels,” Patel said.
“Bank Nifty has important support near 53,200, while resistance is placed near 54,500. A breakout above 54,500 could revive bullish momentum, whereas a breakdown below 53,200 may lead to further weakness towards 52,800,” said Patel.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:
Kotak Mahindra Bank | Buying zone: ₹385 to ₹390 | Target price: ₹425 | Stop loss: ₹365
Patel pointed out that Kotak Mahindra Bank shares have formed a strong base near the ₹370–380 zone, which coincides with the yearly Camarilla support and floor pivot levels, as highlighted on the chart.
The stock is showing signs of stability after recent consolidation, while the RSI remains above 50, indicating positive momentum and improving strength.
“These technical factors suggest the possibility of further upside in the coming sessions. Hence, traders may consider buying the stock in the ₹385–390 zone with a strict stop loss placed at ₹365,” said Patel.
“On the upside, the stock has the potential to move towards the ₹425 mark if momentum continues to strengthen above the support zone,” Patel said.
Ashok Leyland | Buying zone: ₹152 to ₹154 | Target price: ₹168 | Stop loss: ₹145
According to Patel, at the current juncture, Ashok Leyland is showing signs of stability near the crucial ₹150 support level.
On the three-hour chart, this level holds strong technical importance as it coincides with the 78.6% Fibonacci retracement, the completion of the AB=CD pattern at 100%, and the 1.618 external retracement level.
Additionally, the MACD indicator is gradually losing downside momentum, indicating that selling pressure may be fading.
“These technical signals suggest the possibility of a fresh upside move in the coming sessions. Hence, traders may consider accumulating the stock in the ₹152–154 zone with a strict stop loss placed at ₹145,” said Patel.
“On the upside, the stock has the potential to move towards the ₹168 mark if buying momentum sustains above the support area,” Patel said.
Bikaji Foods International | Buying zone: ₹650 to ₹670 | Target price: ₹730 | Stop loss: ₹625
Patel pointed out that at the current juncture, Bikaji Foods share price is witnessing stability near the crucial ₹640–650 support zone.
On the two-hour chart, this area holds strong technical significance as it aligns with the 61.8% Fibonacci retracement level, the completion of the AB=CD pattern at 100%, and the 1.27 external retracement level.
In addition, both the MACD and DMI indicators are showing positive signals, indicating improving strength and momentum in the counter.
“These technical factors suggest the possibility of a fresh upside move in the coming sessions. Hence, traders may consider accumulating the stock in the ₹650–670 zone with a strict stop loss placed at ₹625,” said Patel.
“On the upside, the stock has the potential to move towards the ₹730 mark if buying momentum sustains above the support area,” Patel said.
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Disclaimer: This story is for educational purposes only and does not constitute investment advice. 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.
