Stocks to buy for the short term: The Indian stock market benchmark, the Nifty 50, ended with a modest gain of 29 points, or 0.11%, at 25,694 on Friday, January 16. The gains were led by IT and banking heavyweights amid mixed earnings.
“The earnings upgrade from Infosys helped improve risk appetite and brought some stability after recent uncertainty. At the same time, concerns around a weaker rupee and ongoing global trade-related issues remained on participants’ radar,” Ajit Mishra, SVP of Research at Religare Broking, observed.
Mishra pointed out that the ongoing tussle around the medium-term moving average, the 100 DEMA near the 25,600 zone, is keeping participants cautious.
“The market is likely to take cues from the earnings announcements of key heavyweights such as Reliance Industries, HDFC Bank and ICICI Bank in early trade on Monday, which could determine the next directional move,” said Mishra.
“Participants are advised to maintain a selective, stock-specific approach, focusing on sectors showing relative strength such as IT, financials and metals, while adhering to disciplined risk management in the prevailing volatile environment,” Mishra said.
Stock picks for the short term
HCL Technologies | Last traded price (LTP): ₹1,698 | Buy | Target price: ₹1,950 | Stop loss: ₹1,575
Mishra pointed out that IT stocks are showing early signs of revival after a brief consolidation, with HCL Technologies emerging as one of the stronger performers among the large-cap IT names.
After completing its corrective phase, the stock has displayed resilience by consistently holding above its 20- and 50-week exponential moving averages (WEMA), reflecting a healthy underlying trend and strong buying interest at lower levels.
“It has formed a fresh buying pivot after consolidating previous gains and has now broken out of a well-defined base formation. This price action typically suggests accumulation by market participants ahead of the next upward leg,” said Mishra.
“The absence of sharp drawdowns further highlights the stability of the current structure. Supported by improving sectoral sentiment and a constructive chart setup, HCL Technologies offers a favourable risk–reward profile, making it an attractive buying candidate at current levels,” Mishra said.
Punjab National Bank (PNB) | LTP: ₹132.36 | Buy | Target price: ₹149 | Stop loss: ₹124
Mishra highlighted that the PSU Bank index continues to outperform the broader market and has recently scaled a fresh all-time high, indicating sustained sectoral strength.
Aligning with this momentum, Punjab National Bank has maintained its positive bias and continues to trade firmly.
After breaking out of its earlier corrective phase, the stock has trended higher while holding above its rising 20-week exponential moving average, forming a healthy base-on-base structure.
It has now registered a fresh breakout from an elevated base, resembling a cup-and-handle pattern, which signals continuation of the prevailing uptrend.
The breakout is supported by expanding volumes, adding credibility to the move.
“Given the robust sectoral backdrop and the supportive technical structure, PNB appears well-positioned to surpass its May 2024 high and extend its upward move. Traders may consider initiating long positions, including those who missed earlier opportunities,” said Mishra.
Tata Steel | LTP: ₹188.21 | Buy | Target price: ₹212 | Stop loss: ₹177
Metal stocks have been among the top-performing sectors in recent months and continue to exhibit strong momentum.
Mishra said while certain pockets of the sector are now in overbought territory, select stocks within the steel space continue to offer an attractive risk–reward setup.
Mishra pointed out that Tata Steel has recently delivered a decisive breakout, marking a fresh all-time high.
The stock has broken out of a trend-continuation pattern that developed during its prolonged corrective-to-recovery phase over the past one-and-a-half years.
This breakout, within the broader uptrend, signals the beginning of a new upward leg.
“Supported by a favourable sectoral environment and a constructive technical structure, Tata Steel presents a renewed buying opportunity for traders looking to participate in the ongoing momentum,” said Mishra.
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Disclaimer: This story is for educational purposes only. 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.
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