Stocks to buy in short-term: Stocks to buy in short-term: A powerful rally on Friday helped Indian benchmark indices end a choppy week on a strong note, as easing tensions in West Asia lifted sentiment across global financial markets. The decline in crude oil prices below $90 per barrel encouraged investors to return to equities after remaining cautious for most of the week, resulting in the strongest weekly advance for domestic markets in nearly two months.
For the week, the Sensex advanced 1.7%, while the Nifty posted gains of 1.1%. A large part of the weekly rise was driven by Friday’s sharp upmove, when investors rushed to buy stocks amid improving geopolitical developments. The Nifty surged 2% to settle at 23,622.90, while the Sensex climbed 2.3% to close at 75,527.94. Both indices registered their highest closing levels since April 8.
Market sentiment received a major boost after reports of a ceasefire between the US and Iran, which eased concerns about a broader conflict in the region. The development triggered a relief rally across global equities and helped Indian markets stage an impressive rebound.
On Friday alone, Indian equities gained nearly 4%, as investors welcomed signs of stability in West Asia and the accompanying decline in energy prices, which is seen as positive for inflation and economic growth prospects.
Nifty Outlook
LEVELS TO WATCHOUT FOR: 23,800 – 24,100 / 23,300 – 23,000
Mehul Kothari, Deputy Vice President — Technical Research at Anand Rathi, noted despite the uncertainty, the market continued to display resilience, with domestic investors actively buying on declines. The real turnaround came on Friday, when bulls staged a strong comeback, driving Nifty higher by over 450 points in a single session. The index not only reclaimed key resistance levels but also closed the week comfortably above the 23,600 mark, ending with gains of around 1%.
The sharp rebound once again highlighted the strength of the ongoing uptrend and reinforced the importance of respecting key support zones during periods of heightened market volatility.
“This week, we finally saw some character from the bulls after several weeks of consolidation and volatility. While many market participants turned cautious during the recent decline, we continued to maintain that the 23,150–23,000 support zone was critical and that Bank Nifty was likely to outperform Nifty. The market played out largely in line with this view, with Bank Nifty rallying more than 4% during the week, moving from levels near 53,000 to almost 57,000. Nifty too witnessed a strong recovery, gaining around 1% for the week and closing comfortably above 23,600,” stated the expert.
He further noted that technically, the index has now broken above a short-term trendline resistance near 23,450, confirming a double bottom formation around the 23,000 zone. While this is an encouraging development, a decisive breakout above 24,100 is still required to confirm the start of a fresh rally that could potentially take the index towards new highs in the coming months.
For now, the fact that the market respected key support levels and bounced sharply despite widespread pessimism is a positive sign. When many were worried about a deeper correction, we chose to stay patient and constructive, and the market’s strong rebound once again highlights the importance of focusing on structure rather than sentiment, he added.
Bank Nifty Outlook
Kothari highlighted for BANK NIFTY once again demonstrated its relative strength and continued to outperform the broader market. In line with our view, the index witnessed a sharp rally of more than 4% during the week, surging from levels near 53,000 to almost 57,000.
“The strong move reinforces the positive structure that has been developing over the past few weeks and highlights the leadership being shown by the banking space. However, Bank Nifty is now approaching a critical hurdle near 57,500. While a breakout above this level can pave the way for further upside, any failure to cross it may result in some short-term profit booking, which would be healthy and constructive from a longer-term perspective. We continue to maintain our buy-on-dips stance, as the broader trend remains firmly positive. On the downside, 54,000 remains a crucial support level and is likely to act as a strong cushion against any corrective move. As long as this level holds, we expect Bank Nifty to remain in an uptrend and continue outperforming the broader market,” he noted.
Mehul Kothari’s stock recommendations today under ₹100
Regarding stocks to buy under ₹100, Mehul Kothari recommended these three short-term picks: IRB Infrastructure Developers, Rattanindia Enterprises, and NHPC.
1] IRB Infra: Buy near ₹20.50, Target ₹22.50, Stop Loss ₹19.50;
2] Rattanindia: Buy near ₹36, Target ₹39, Stop Loss ₹34.50; and
3] NHPC: Buy around ₹73.50, Target ₹77.50, Stop Loss ₹71.50.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
