Stocks to buy for short term: Indian benchmark Nifty 50 ended lower for the second consecutive week last Friday, failing to sustain levels above the 25,000 mark. Stretched valuations, lack of fresh triggers, and a slowdown in foreign institutional investor (FII) buying weighed on market sentiment.
However, while the benchmark index traded in a narrow range and closed 0.41 per cent lower for the week ended May 30, broader markets outperformed. The Nifty Midcap 100 and the Nifty Smallcap 100 indices rose over 1 per cent each.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, the index is trading close to the 161.8 per cent Fibonacci extension, a zone that often acts as a resistance.
Patel highlighted that the golden crossover (50-day EMA above 200-day EMA) remains significantly lower—around 23,800 to 23,500—indicating room for a deeper pullback if key support levels give way.
For the Nifty 50, immediate resistance is seen in the 25,100–25,300 zone, while 24,450 is the key support to monitor.
“A decisive breach below this level could trigger a deeper corrective move. In this environment, we maintain a cautious bias, favouring profit-booking on rallies rather than aggressive dip buying, as the retracement may extend further,” said Patel.
Stock picks for the short term
Jigar Patel recommends buying shares of Swiggy, PNB and Castrol India for the next two to three weeks.
Swiggy | Previous close: ₹333.05 | Target price: ₹375 | Stop loss: ₹330
Swiggy’s price action is currently unfolding within a falling parallel channel, suggesting a phase of consolidation.
However, insights from Camarilla Pivot Analysis indicate a potential momentum shift.
Over the past two months—April and May— Swiggy stock has formed an inside value setup, where each month’s pivot range is contained within the previous month’s.
April’s pivot range remained within March’s, and May has followed suit by staying largely inside April’s range.
This type of compression typically precedes a high-probability breakout within 1–2 weeks.
Adding weight to this setup, the RSI is showing a bullish divergence, signalling a likely reversal or upward move in the near term.
“A long position is recommended above ₹330, with an upside target of ₹375,” said Patel.
Punjab National Bank (PNB) | Previous close: ₹105.82 | Target price: ₹119 | Stop loss: ₹98
PNB is showing signs of a potential bullish reversal. A Bullish Harami candlestick pattern has formed on the weekly timeframe, indicating a possible trend shift.
Notably, a strong base formation is visible near the S3 Camarilla yearly pivot, adding technical support to the setup.
Additionally, the weekly RSI has decisively broken above the key 50 level, now hovering around 57, which further strengthens the bullish case.
“We recommend initiating long positions in the ₹104–106 zone, with a stop loss below ₹98. The upside target is ₹119 in the coming weeks,” said Patel.
Castrol India | Previous close: ₹216.22 | Target price: ₹240 | Stop loss: ₹202
Castrol India stock has recently broken out of a consolidation range between ₹205 and ₹213, signalling renewed bullish momentum.
Notably, this consolidation occurred between the R1 Floor Pivot and the R3 Camarilla Monthly Pivot, lending further credibility to the breakout as a technically significant move.
During the entire consolidation phase, the daily RSI consistently held above the 50 mark, reflecting underlying strength, and is now positioned comfortably above 60.
“We recommend initiating long positions in the ₹214–216 range, with a daily closing stop loss at ₹202. The target is set at ₹240 in the short to medium term,” said Patel.
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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.
