Top stocks to buy for short term: The Indian stock market remained in the negative territory for the eighth consecutive week for the week ended 1 October. registering the longest such streak in 25 years.
Persistent selling by foreign portfolio investors (FPIs), rising global bond yields, elevated crude prices, and concerns about further tightening of monetary policy are weighing on markets.
Experts underscored that the Nifty has managed to hold onto the crucial 22,200 support level, while the Nifty 500 has also maintained its long-term upward trendline, providing some relief after the recent sharp sell-off.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the market is now at a significant turning point.
“The Nifty’s daily Relative Strength Index (RSI) is at multi-month lows, indicating that the market is deeply oversold. Such extreme pessimism and oversold momentum increase the likelihood of a short-term stabilization or relief bounce. However, the 22,200 level remains the key make-or-break point, with 21,900 acting as the next important support level,” said Patel.
“On the upside, the immediate resistance zone is between 22,800 and 23,200. A sustained move above this band would suggest that selling pressure is easing and could trigger a stronger recovery,” Patel added.
For Bank Nifty, Patel believes a break below 54,000 could drag it towards 53,000, while 55,500 remains the key hurdle.
Stock picks for short term
Omnitech Engineering | Buy in the range of ₹590– ₹610 | Target price: ₹700 | Stop loss: ₹550
Patel pointed out that Omnitech Engineering has witnessed a decisive breakout above ₹575 after nearly a month of consolidation, accompanied by a strong rise in volumes, indicating renewed buying interest.
The technical setup remains positive, with the daily RSI sustaining above 60 and the weekly RSI holding above 70, reflecting strong momentum across short- and medium-term timeframes. The DMI indicator is also supporting the bullish setup.
“After the recent breakout, a pullback towards the ₹590–610 zone can be used to accumulate the stock rather than chasing the price at higher levels,” said Patel.
“The technical target is placed at ₹700, while ₹550 remains the crucial stop-loss. Overall, the trend remains positive, and sustained trading above ₹575 would keep the bullish structure intact,” Patel said.
IT BEES | Buy in the range of ₹29.50– ₹31.50 | Target price: ₹39.13 | Stop loss: ₹27
Patel underscored that IT BEES is showing a positive technical setup, supported by a combination of regular bullish divergence followed by hidden bullish divergence on both the IT Index and IT BEES.
During the initial regular bullish divergence, IT BEES formed lower lows in price while RSI formed higher lows, indicating weakening selling momentum.
The stock subsequently crossed its previous peak of ₹35.50 and moved to a new high of ₹36.98, while RSI moved above 70, indicating a positive RSI range shift and strengthening momentum.
Following this rally, IT BEES corrected towards the ₹31 zone. However, this time the RSI made a lower low, while the price did not make a corresponding lower low.
This resulted in a hidden bullish divergence, suggesting that the underlying uptrend may still be intact.
“The combination of these two divergences indicates improving momentum and raises the possibility of a broader recovery in the IT sector,” said Patel.
“Based on this setup, one may consider accumulating IT Bees in the ₹29.50–31.50 zone with a stop loss at ₹27 on a closing basis. The technical target is placed at ₹39.13,” said Patel.
Laxmi Organic Industries | Buy in the range of ₹182– ₹178 | Target price: ₹201 | Stop loss: ₹170
According to Patel, Laxmi Organic Industries is showing a positive reversal on the daily chart, supported by a bullish divergence in momentum.
While the daily RSI has formed lower lows, the price action has not made corresponding lower lows, indicating that selling pressure is weakening and underlying momentum is gradually improving.
The stock has also taken support near its important trendline, along with the 50-DEMA and 200-DEMA, creating a strong support confluence. This combination provides a favourable technical setup from the current levels.
“Considering the positive structure, one may look to accumulate Laxmi Organic Industries in the ₹178–182 zone on dips. The stop-loss should be maintained at ₹170 on a closing basis, while the technical target is placed at ₹201,” said Patel.
“Sustained price action above the key support zone would keep the positive reversal structure intact,” Patel added.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. 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.
