Top stocks to buy for the short term: The Indian stock market witnessed sharp selling pressure on Monday, 28 September, with the benchmark Nifty 50 declining 1.56% to close at 22,780, decisively breaching the crucial 23,000 psychological support level.
The sell-off was widespread, as the mid- and small-cap segments also ended with deep cuts.
Vishnu Kant Upadhyay, AVP- Research at Master Capital Services, underscored that the broader technical structure remains bearish, with a clear formation of lower highs and lower lows, indicating persistent selling interest at higher levels.
Furthermore, the index continues to trade all its key moving averages below, reinforcing the prevailing negative momentum.
“The decisive breach below 23,000 has opened the door for further downside towards 22,500, the next major support zone. A sustained recovery above 23,000 would be required to ease near-term weakness,” said Upadhyay.
Stock picks for the short term
As market sentiment is weak, experts recommend a stock-specific approach, betting on stocks with strong fundamentals and strong tech signals in the short term.
Vishnu Kant Upadhyay of Master Capital Services and Hitesh Tailor of Choice Broking recommend buying the following six stocks for the next 1-2 weeks:
Expert: Vishnu Kant Upadhyay, AVP- Research at Master Capital Services
Mahindra & Mahindra (M&M) | Previous close: ₹2,995 | Target prices: ₹3200 and ₹3,300 | Stop loss: ₹2,900 | Upside potential: 10%
Upadhyay pointed out that M&M stock has bounced from the crucial horizontal support zone of ₹2,900- ₹2,970, indicating buying interest at lower levels.
The recent recovery suggests that the stock is attempting to establish a base after a sustained corrective decline.
However, the price continues to trade below its key moving averages, indicating that the broader trend remains under pressure.
A sustained rebound from the current support zone, followed by a decisive reclaim of the short-term moving averages, would improve the technical outlook and signal a potential recovery in momentum.
“The ₹2,900- ₹2,970 zone remains crucial for sustaining the ongoing rebound and preventing further downside,” said Upadhyay.
Engineers India | Previous close: ₹313.90 | Target prices: ₹345 and ₹350 | Stop loss: ₹285 | Upside potential: 11.5%
Upadhyay underscored that Engineers India stock has delivered an all-time high breakout above the ₹305 mark on a closing basis, signalling a strong expansion from its prolonged consolidation phase.
The breakout is supported by a substantial surge in volumes, adding conviction to the price action and indicating strong participation.
The stock is comfortably sustaining above its key moving averages, with the 21, 55, 100, and 200 EMAs aligned positively, reinforcing the underlying bullish structure.
The formation of higher highs and higher lows further supports the prevailing uptrend.
“Sustenance above ₹305 is expected to keep the breakout intact and may pave the way for further upward momentum in the coming sessions,” said Upadhyay.
Dr. Reddy’s Laboratories | Previous close: ₹1,221 | Target price: ₹1,310 | Stop loss: ₹1,155 | Upside potential: 7%
Upadhyay said Dr Reddy’s Laboratories’ share price has delivered a decisive breakout above the horizontal resistance near ₹1,200 on a closing basis, indicating a potential reversal in the short-term trend.
The stock has reclaimed its major short-term EMAs and is now approaching the 200 EMA, a crucial resistance level. Earlier, the stock formed a base near ₹1,100, developing a double bottom pattern that has now been confirmed on the daily chart.
The overall chart structure has improved, supported by renewed buying interest and strengthening momentum. The RSI has climbed to 63, indicating positive momentum and further upside potential.
“Sustenance above ₹1,200 remains crucial for continued recovery,” said Upadhyay.
Expert: Hitesh Tailor, Technical Research Analyst at Choice Broking
Apollo Micro Systems | Previous close: ₹408.30 | Target price: ₹450 | Stop loss: ₹387 | Upside potential: 10%
Tailor said Apollo Micro Systems is showing early signs of strength after taking strong support near its 20-day and 50-day EMAs and bouncing back.
The stock has formed a bullish engulfing pattern on the daily chart and continues to trade above all key EMAs, confirming sustained momentum. Price action indicates a healthy rebound off key support confluences, setting up a breakout trajectory toward higher levels.
“Fresh cash positions can be initiated at the current market price of ₹408, with a key risk-control stop loss at ₹387 and an upside target of ₹450. Always follow strict risk management,” said Tailor.
Varroc Engineering | Previous close: ₹848.35 | Target price: ₹950 | Stop loss: ₹800 | Upside potential: 12%
As per Tailor, Varroc Engineering continues to exhibit structural strength, sustaining a Higher High-Higher Low pattern on the daily chart.
The stock is witnessing healthy accumulation near its rising trendline support, supported by a bullish Supertrend and RSI holding near the midpoint.
Price action indicates a strong continuation setup following consolidation, building momentum toward fresh swing highs.
“Fresh cash positions can be initiated at ₹848, targeting ₹950 with a key stop loss at ₹800. Always adhere to strict risk management,” said Tailor.
Petronet LNG | Previous close: ₹289.85 | Target price: ₹315 | Stop loss: ₹274 | Upside potential: 9%
As per Tailor, Petronet LNG continues to maintain its strong underlying trend, trading in alignment with a rising trendline support on the daily chart.
The stock is sustaining a Higher High-Higher Low (HH-HL) structure, accompanied by persistent buying interest near its short-term moving average (EMA) supports.
Price action reflects steady accumulation following a consolidation phase, with the stock holding comfortably above its key support zones.
The structural alignment indicates high momentum, setting up a potential extension toward fresh swing highs.
“Fresh cash positions can be initiated around ₹290, with a risk-control stop loss at ₹274 and an upside target of ₹315. Always follow strict risk management,” Tailor said.
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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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