Stocks to buy for the short term: The Indian stock market has been under significant pressure over the last year on weak earnings, stretched valuations, global uncertainties and heavy foreign capital outflow.
The benchmark Nifty 50 is now down about 5 per cent over the last year. The index ended in the red for the seventh consecutive session on Monday, September 29.
Experts suggest investors should be cautious in the short term and bet on stocks with favourable fundamental and technical indicators.
Vishnu Kant Upadhyay of Master Capital Services and Hitesh Tailor of Choice Equity Broking recommend six stocks to buy for the next 2-3 weeks. Take a look:
Stock picks for short term
Expert: Vishnu Kant Upadhyay, Assistant Vice President – Research & Advisory at Master Capital Services
ITC | Buy at ₹407 | Stop loss: ₹392 | Target prices: ₹430 and ₹440
ITC is trading in a double bottom formation on daily charts, signalling a potential bullish reversal pattern.
Price action has taken support near ₹390-395, forming higher lows in this zone, while the stock attempts to reclaim key short-term EMAs, indicating improving strength.
RSI is stabilising above 50 and turning upward, reflecting building momentum, while MACD is on the verge of a positive crossover, supporting the setup.
“A rise in volumes on bounce-backs validates accumulation, reinforcing the bullish outlook,” said Upadhyay.
NALCO | Buy at ₹203.91 | Stop loss: ₹193 | Target prices: ₹220 and ₹230
NALCO shows a strong bullish signal, confirming a significant trend reversal with the Inverse Head and Shoulders (IHS) breakout.
The stock has successfully retested the neckline support, validating the pattern’s strength.
Price action is trading above key EMAs, reflecting underlying strength, while the RSI and MACD are confirming strong momentum.
High volumes on up-moves and ADX above 25 reinforce the conviction for a sustained uptrend.
Canara Bank | Buy at ₹120.48 | Stop loss: ₹113 | Target prices: ₹130 and ₹140
Prices have confirmed a strong bullish continuation with a breakout from a symmetrical triangle pattern.
The recent retracement to the breakout zone offers a favourable long entry, providing an excellent risk-reward opportunity.
Price action is trading robustly above key short and medium-term EMAs, reflecting underlying strength.
“Both the RSI and MACD are supporting the move with strong positive momentum and volume accumulation, reinforcing the high conviction for a sustained move towards its technical target,” said Upadhyay.
Expert: Hitesh Tailor, Technical Research Analyst, Choice Broking
Bank of Baroda | Buy at ₹254 | Stop loss: ₹243 | Target price: ₹279
Bank of Baroda has successfully executed a trendline breakout. The breakout is validated by a retest, indicating strong bullish sentiment.
The stock is trading above key EMAs — 20, 50, 100, and 200 — suggesting a sustained uptrend. Rising volume with an upward slope further supports the move.
The RSI stands at 64.65, reinforcing positive momentum.
“Immediate resistance is seen at ₹258; a breakout above this level could lead to a further rally towards ₹280. Short-term traders may consider entry above ₹258, targeting ₹279, with a stop loss at ₹243 to manage risk effectively,” said Tailor.
ONGC | Buy at ₹240 | Stop loss: ₹228 | Target price: ₹265
ONGC is on the verge of breaking above its previous swing high, supported by consistently increasing volume — a strong indication of a rising trend.
“The stock is facing immediate resistance near ₹244; a breakout above this zone could trigger upward momentum towards the target of ₹265,” Tailor said.
ONGC has formed a bullish double bottom pattern around ₹230, indicating strong support and renewed buying interest.
Additionally, the RSI has broken above 50, confirming bullish momentum.
“Short-term traders may consider entering at current levels, targeting ₹265, with a strict stop loss at ₹228 to ensure proper risk management,” said Tailor.
ICICI Lombard General Insurance Company | Buy at ₹1,903.50 | Stop loss: ₹1,834 | Target price: ₹2,030
ICICI Lombard has formed an ascending triangle pattern, supported by a rising volume trend—indicating bullish strength.
“The stock is facing immediate resistance at ₹1,920; a breakout and sustained move above this level could lead to upside momentum toward ₹2,030,” said Tailor.
On the downside, the stock respected the previous day’s low and closed in green, signalling buyer strength. Trading above the 200 EMA further confirms a bullish bias. The RSI is at 54.23, indicating recovery from oversold conditions.
“Short-term traders may consider entering above ₹1920, targeting ₹2030, with a strict stop loss at ₹1835 for effective risk management,” said Tailor.
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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.
