Stocks to buy for the short term: The Indian stock market remained under pressure in July due to heavy foreign capital outflow, tariff-related uncertainty, and unimpressive Q1 results.
Benchmark Nifty 50 dropped nearly 3 per cent last month, snapping its winning streak of the last four consecutive months. On a weekly scale, the index extended losses for the fifth consecutive week.
Nifty has declined over 1,100 points from its recent high of 25,669, ending at 24,565 last Friday (August 1).
Nifty 50 technical outlook
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, highlighted the golden crossover on the Nifty 50, where the 50-day exponential moving average (50-DEMA) moved above the 200-day exponential moving average (200-DEMA).
“While typically a bullish signal, historical precedent suggests such formations are often followed by a phase of mean reversion before the next leg of the uptrend resumes,” said Patel.
Patel underscored that the index is approaching a critical confluence zone where the 200-day simple moving average (200-DEMA) and the 200-day simple moving average (200-DSMA) converge in the 24,200–24,000 range.
He added that this alignment enhances the technical significance of this support band and warrants close monitoring. Additionally, a bearish candlestick pattern has started to emerge on the monthly chart, though it remains in its early stages and requires confirmation in subsequent sessions.
On the daily chart, momentum indicators have yet to signal deeply oversold conditions, implying that the ongoing correction may not have run its full course.
“A breach below the 24,450 horizontal support level could accelerate downside momentum, potentially dragging the index toward the 24,000 mark or even into the 23,800–23,600 zone—areas that may present mean reversion opportunities for medium-term investors,” said Patel.
“On the upside, the 25,000 level serves as a psychological hurdle. Only a sustained move above this threshold could revive bullish sentiment in the short term. Until then, market participants are advised to maintain a cautious and selective approach, focusing on high relative strength stocks while avoiding aggressive bottom-fishing strategies. In this environment, risk management and capital preservation should take precedence over short-term gains,” Patel said.
Key resistance zone for Nifty 50: 25,800 – 26,000
Key support zone for Nifty 50: 24,450 – 24,000
Stock picks for the short-term
Jigar Patel recommends buying shares of Mazagon Dock, Kaynes Technology, and Hero MotoCorp for the next two to three weeks.
Mazagon Dock Shipbuilders | Previous close: ₹2,721.80 | Target price: ₹3,100 | Stop loss: ₹2,500
Recently, Mazagon Dock has experienced a significant correction of 1,130 points from its peak of ₹3,775, resulting in a 30 per cent decline.
As indicated in the chart, the price has tested the 200-day exponential moving average (DEMA) and the 200-day simple moving average (SMA) at the current juncture.
Historically, Mazagon Dock has signalled a bullish reversal after testing both averages.
Additionally, the volume has been increasing from the recent low, observed both on the daily and hourly scales.
“We recommend initiating a long position in staggered increments within the range of ₹2,750-2,650 with a target of ₹3,100 and a stop loss of ₹2,500,” said Patel.
Kaynes Technology India | Previous close: ₹6,371.50 | Target price: ₹7,000 | Stop loss: ₹5,850
Recently, Kaynes Technology reversed after reaching its trendline and broke above the descending trendline with substantial volume, as indicated in the chart.
On a technical basis, MACD has provided a bullish cross near the zero line, suggesting bullish momentum.
“We recommend initiating a long position in a staggered manner, with a target of ₹6,400-6,200 to achieve an upside of ₹7,000 and a stop loss of ₹5,850 based on the daily closing price,” said Patel.
Hero MotoCorp | Previous close: ₹4,311.60 | Target price: ₹ ₹4,750 | Stop loss: ₹4,075
Hero MotoCorp recently experienced a consolidation within a narrow range of ₹4,150– ₹4,375, forming a classic triangle pattern on the charts.
On July 15, 2025, the stock broke out decisively from this formation, accompanied by a substantial increase in volume, confirming the validity of the breakout.
This technical strength is further supported by the Camarilla monthly pivot structure, which exhibited an inside value relationship—a setup that frequently precedes significant directional movements.
The confluence of these factors suggests substantial bullish potential in the near term.
“Based on this analysis, traders are advised to consider purchasing Hero MotoCorp in the ₹4,320– ₹4,280 zone, with an anticipated upside target of ₹4,750. A stop loss should be maintained below ₹4,075 on a daily closing basis to effectively manage risk,” said Patel.
Read all market-related news here
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, 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.