Stocks to buy for the short term: The Indian stock market ended with decent gains of about 1 per cent for the week ended October 3 after the Reserve Bank of India’s (RBI) monetary policy announcement. The RBI maintained a status quo on the policy rate and stance, but the projection of growth and inflation trends, along with the dovish tone of RBI Governor Sanjay Malhotra, lifted market sentiment.
The Nifty 50 settled at 24,894 on Friday, inching closer to the psychologically important 25,000 mark. Banking heavyweights are driving the gains. The Nifty Bank index rose over 2 per cent last week.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted that the central bank’s balanced tone helped alleviate investor concerns and triggered a strong recovery in banking stocks.
This revival in the banking space lifted the overall market sentiment, pushing the Nifty 50 from a weekly low of 24,600 to close near 24,900, registering a weekly gain of around 1 per cent.
Patel said the Nifty 50 had entered the oversold territory in the previous week, and the 24,600–24,500 zone acted as a strong support base. This area has now emerged as a crucial demand zone for traders.
Patel underscored that, despite the recovery, the index is not yet entirely out of the woods.
“A sustained close above the 25,000 mark for consecutive sessions will be essential to confirm the formation of a short-term base. If this breakout occurs, short-covering could accelerate, propelling the index towards its next resistance zone of 25,200–25,350,” Patel said.
“On the downside, any weakness is likely to find buying support near 24,500–24,400 levels, which correspond to previous swing lows and trendline support,” said Patel.
For Nifty Bank, Patel believes a decisive close above 55,800 will further validate a bullish reversal, paving the way for continued sectoral leadership. Until then, immediate support remains intact around 55,000–54,500, making this zone a critical level to watch in the coming sessions.
Stock picks for the short term
Jigar Patel recommends buying shares of NTPC, Hindustan Unilever (HUL), and ITI for the next two to three weeks.
NTPC | Target price: ₹375 | Stop loss: ₹320
Patel observed that NTPC has exhibited a trendline breakout, followed by a healthy pullback and subsequent reversal, indicating the resumption of bullish momentum.
This price behaviour confirms buying interest at lower levels and highlights a strong demand zone near ₹325, where the stock has formed multiple bottoms in recent weeks.
The stock is now retesting its breakout zone and showing renewed strength on both intraday and daily charts. Moreover, a close above the 200-DEMA has further reinforced the positive outlook, strengthening the case for continued upside.
“Traders are advised to buy NTPC in the ₹345–335 range, maintaining a stop loss at ₹320 on a closing basis. With the trendline breakout and momentum reversal firmly in place, the stock appears well-positioned for a move towards ₹375, backed by a robust technical structure and renewed buying momentum,” said Patel.
HUL | Target price: ₹2,750 | Stop loss: ₹2,450
Patel underscored that HUL has seen a correction of around 300 points from its recent high of ₹2,750 and is currently hovering near the ₹2,550 zone.
The stock recently found support at the 200-DEMA, which coincides with the 50%–61.8% Fibonacci retracement levels of its prior uptrend. Additional support is provided by the Ichimoku Cloud, reinforcing the bullish setup.
From a technical perspective, the RSI and MACD are showing early reversal signals, suggesting that selling pressure is easing.
“Traders may consider buying HUL in the ₹2,550–2,500 range, with a stop loss below ₹2,450 on a closing basis. The stock is positioned to rally towards ₹2,750, supported by its strong technical structure and momentum recovery,” Patel said.
ITI | Target price: ₹350 | Stop loss: ₹290
ITI has witnessed a trendline breakout, backed by the confluence of 200 SMA and EMA, confirming strength in price action, said Patel.
The RSI has rebounded from the 40 zone, while the price closing above the Ichimoku Cloud further strengthens the bullish outlook.
This combination of improving momentum indicators and key moving average alignment highlights a robust technical setup, suggesting that buying momentum is gaining traction.
“Traders are advised to buy ITI in the ₹316–310 range, maintaining a stop loss at ₹290 on a closing basis. The stock is poised for a target towards ₹350, supported by its strong technical structure, momentum recovery, and bullish confirmation above the Ichimoku Cloud, indicating scope for further upside in the near term,” 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.
