Stocks to buy for the short term: The Nifty 50, the benchmark of the Indian stock market, ended in the red for the sixth consecutive session last Friday, overall losing 3 per cent in the period due to uncertainty over the India-US trade deal amid the H-1B visa fee hike and tariff announcement on pharma. Sustained foreign capital outflow remains another key factor keeping the market down.
The index sapped its three-week winning run and dropped by 2.65 per cent for the week ended Friday, September 26.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, the index now hovers close to another trendline support near 24,500, with 24,400 marking the previous swing low.
For the bulls to maintain control, this band must sustain.
Patel said intraday setups are oversold, hinting at the likelihood of a short-term rebound between 24,500 and 24,400. However, a decisive breakdown below 24,400 could spark fresh panic and alter the broader outlook.
On any recovery, resistance is expected at 24,800 and subsequently at 25,000. Patel said traders should stay patient and avoid hasty decisions.
Stock picks for the short term
Jigar Patel recommends buying shares of L&T, Bank of Baroda, and Anant Raj for the next two to three weeks.
Larsen & Toubro (L&T) | Target price: ₹4,050 | Stop loss: ₹3,575
Patel underscored that the L&T stock has broken out above its falling trendline, backed by a noticeable increase in volumes.
On the weekly chart, the RSI has also crossed its falling trendline, while the MACD has generated a bullish crossover above the zero line, strengthening the case for an upmove.
“Long positions are advised in the ₹3,700–3,730 zone with a stop-loss at ₹3,575 on a closing basis. The target is placed at ₹4,050,” said Patel.
Bank of Baroda | Target price: ₹271 | Stop loss: ₹235
According to Patel, shares of Bank of Baroda have built a base near its 50-period EMA on the weekly timeframe and recently gave a breakout accompanied by decent volumes.
The weekly RSI has broken above its falling trendline and is comfortably above 50, while the MACD has confirmed a bullish crossover above the zero line.
“Traders may accumulate in a staggered manner up to ₹244, with a stop loss at ₹235 on a closing basis. The stock has potential to move towards ₹271,” said Patel.
Anant Raj | Target price: ₹840 | Stop loss: ₹570
After consolidating near its 50-period EMA on the weekly scale, Anant Raj witnessed a strong breakout with robust volume activity.
Patel said that the momentum indicators are supportive, with the weekly RSI holding above 60 and the MACD giving a bullish cross above the zero line.
“Accumulation is recommended in a staggered manner up to ₹640, keeping a stop-loss below ₹570 on a closing basis. The upside target is seen at ₹840,” said Patel.
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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.
