Stocks to buy for short term: Despite Friday’s healthy gains, Nifty 50 declined over half a per cent for the week ended May 23 on profit booking amid a lack of fresh positive triggers.
The benchmark slipped below the crucial 24,500 mark amid bouts of profit booking, though it managed a partial recovery by the end of the week.
On Monday, May 26, the index reclaimed the 25,050 level in intraday trade, boosted by RBI’s hefty dividend to the government, Trump’s decision to postpone tariffs on the European Union and the dollar’s decline.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that the index continues to hover near the 161.8 per cent Fibonacci extension level, while the golden crossover zone—where the 50-day exponential moving average (EMA) crosses above the 200-day EMA—remains significantly lower around 23,800–23,500, keeping the risk of a mean reversion in play.
“Looking ahead, 25,300 remains a key resistance to watch, and a breakdown below 24,450 could pave the way for a deeper correction towards the 24,000 zone. In the current setup, the strategy favours profit-booking on rallies rather than aggressive dip-buying, as this pullback may evolve into a more extended consolidation phase,” said Patel.
Stock picks for the short term
Jigar Patel recommends buying shares of RVNL, LIC and SAIL for the next two to three weeks.
Rail Vikas Nigam (RVNL) | Previous close: ₹398.65 | Target price: ₹445 | Stop loss: ₹350
RVNL recently witnessed a strong rally and is now undergoing a healthy pullback, presenting a potentially lucrative opportunity for traders.
The previous breakout zone around ₹380– ₹385 is a critical area to watch, now acting as a support level.
Interestingly, this zone also coincides with the earlier Camarilla R3 resistance, which has now turned into support, adding further credibility to the level.
On the hourly chart, a hidden bullish divergence is taking shape, signalling possible strength beneath the surface and improving the risk-reward setup for a fresh entry.
“We recommend going long only within the ₹380– ₹385 zone, targeting an upside move towards ₹445. To manage risk, a daily close below ₹350 should be treated as a stop-loss trigger,” said Patel.
Steel Authority of India (SAIL) | Previous close: ₹125.92 | Target price: ₹136 | Stop loss: ₹120
After a prolonged 17-week consolidation, SAIL has finally delivered a breakout on the weekly chart, accompanied by strong momentum. The weekly RSI is now at 57.81, the highest level since October 2024, indicating a resurgence in strength.
What makes this breakout even more compelling is the exceptional volume activity observed during the consolidation phase. From January to April 2025, a total of 1.548 billion shares (i.e., 155 crore shares) changed hands.
This represents nearly 37.5% of the total outstanding shares of the company (4,13,05,25,289 shares), highlighting significant accumulation by market participants.
“We recommend a long position in the ₹124– ₹126 zone, with an upside target of ₹136. A daily close below ₹120 should be treated as a stop loss,” said Patel.
Life Insurance Corporation Of India (LIC) | Previous close: ₹860.25 | Upside potential: ₹960 | Stop loss: ₹810
LIC has established a solid base in the ₹730– ₹780 range, a zone that coincides with key long-term supports: the S3 Yearly Camarilla level and the S1 Yearly Floor Pivot.
This confluence of support has added significant strength to the structure.
After a prolonged 6–7 week consolidation, LICI recently broke out and is now comfortably trading above the breakout zone, showing strong price acceptance.
Adding to the bullish sentiment, the weekly RSI has climbed to around 53, marking its highest level in the past six to seven months, indicating improving momentum.
“We suggest going long in the ₹845– ₹860 range, with an upside potential towards ₹960. A daily close below ₹810 should be used as a stop loss,” said Patel.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
