Stocks to buy for the short term: Market benchmarks, the Sensex and the Nifty 50, extended losses for the second consecutive session on Wednesday, 13 August, on persistent uncertainty about a potential US-Iran deal and the reopening of the Strait of Hormuz.
Elevated oil prices and caution ahead of the US and India CPI prints also weighed on sentiment.
The indices declined almost 1% during the session but pared losses to end with small losses.
The Nifty took support near the 20-day SMA and rebounded.
Amol Athawale, VP – Technical Research at Kotak Securities, believes that the 20-day SMA or 24,300 would act as key support for traders.
“If the market manages to sustain above these levels, it could rebound towards 24,500-24,600. On the flip side, below 24,300, selling pressure is likely to intensify, and the market could decline towards 24,150-24,100,” said Athawale.
Stock picks for the short term
Amol Athawale recommends buying the following three stocks for the next 1-2 weeks:
Bank of Baroda (BoB) | Previous close: ₹251 | Target price: ₹267 | Stop loss: ₹242
Athawale pointed out that the Bank of Baroda share price has entered the accumulation phase, moving within a defined range on the daily chart
Recent bullish activity suggests improving strength and rising buying interest. A breakout move beyond the upper boundary of the broader range appears likely in the near term, offering a favourable risk-reward opportunity from current levels.
“For positional traders, ₹242 is a crucial level to watch. Sustaining above this mark could drive the stock toward ₹267. However, a close below ₹242 would weaken the structure, and traders may consider exiting long positions to manage downside risk effectively,” said Athawale.
Central Depository Services (CDSL) | Previous close: ₹1,339 | Target price: ₹1,440 | Stop loss: ₹1,295
According to Athawale, CDSL shares have reversed from their key support zone. The stock has formed a rounding bottom chart pattern on the daily scale and is showing a steady reversal.
The technical indicator, such as RSI, also indicates a further uptrend from current levels, which could boost bullish momentum in the coming sessions.
“As long as the stock is trading above ₹1,295, the bullish texture is likely to continue. Above which, the stock could move up to ₹1,440,” said Athawale.
Prestige Estates Projects | Previous close: ₹1,590.70 | Target price: ₹1,700 | Stop loss: ₹1,530
On the daily charts, after the sharp up move, Prestige Estates Projects witnessed profit-booking from higher levels.
However, closing near the important retracement zone and short-term moving average suggests a bullish continuation chart structure.
“The stock is likely to resume its uptrend in the coming sessions. For the next few trading session ₹1,530 could be the trend decider level for the bulls, if it sustains above the same, we can expect further uptrend towards ₹1,700,” said Athawale.
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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.
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