Stocks to buy for the short term: The domestic stock market benchmark Nifty 50 traded in a volatile manner on Thursday but ended marginally higher, tracking mixed global cues.
Select heavyweights, including Reliance, HDFC Bank, and Mahindra and Mahindra, supported the benchmarks even as elevated oil prices due to the US-Iran war kept sentiment cautious.
On Friday, the domestic market is expected to see gains amid positive global cues.
On the technical front, the Nifty is encountering resistance near 24,400, which coincides with the 200-day EMA.
As per Ajit Mishra, SVP of Research at Religare Broking, while the broader recovery structure remains intact above the 24,100-24,000 support zone, the inability to sustain at higher levels suggests the possibility of a consolidation phase, before an extension towards the 24,600–24,800 zone in the near term.
“We maintain our ‘buy-on-dips’ approach, with a preference for relatively stronger stocks across sectors while adhering to disciplined risk and position management,” said Mishra.
Stock picks for the short term
Ajit Mishra recommends buying the following three stocks for the next 1-2 weeks:
Hero MotoCorp | Previous close: ₹5,325 | Target price: ₹5,710 | Stop loss: ₹5,120
Mishra pointed out that the auto sector continues to exhibit relative strength, with renewed buying interest driving the trend higher, and Hero MotoCorp remains well aligned with this positive momentum.
The stock has staged a decisive breakout after a prolonged corrective phase, moving above the falling trendline and signalling a shift in trend.
Following several months of consolidation, it has broken out of its base formation while reclaiming its long-term moving average (200-day EMA), indicating a strengthening price structure.
“The breakout is supported by healthy volume expansion, reflecting improved market participation and reinforcing the bullish outlook. In view of the constructive technical setup and favourable sectoral tailwinds, traders may consider fresh long positions within the suggested range,” said Mishra.
The Indian Hotels Company | Previous close: ₹749.25 | Target price: ₹808 | Stop loss: ₹720
As per Mishra, after remaining in a corrective phase for over a year, Indian Hotels Company shares found support near their long-term moving average (200-week EMA) and staged a healthy recovery.
They subsequently witnessed a decisive breakout above the declining trendline, signalling an end to its lower top–lower bottom structure.
Following the breakout, the stock consolidated in a narrow range, forming a higher base above the confluence of key moving averages.
It has now formed a buying pivot, indicating renewed buying interest and the potential start of the next leg of the uptrend.
“Backed by a resilient price structure and improving technical setup, the stock appears well placed to extend its upward momentum. Hence, traders may consider initiating fresh long positions within the recommended buying range,” said Mishra.
Power Finance Corporation (PFC) | Previous close: ₹426.25 | Target price: ₹458 | Stop loss: ₹411
Mishra said the PFC share price has regained bullish momentum after reclaiming its long-term moving average (200-day EMA) and recovering steadily from a key support zone.
The stock has delivered a decisive breakout above the declining trendline after forming a strong base, indicating a potential trend reversal.
The accompanying rise in trading volumes adds conviction to the breakout and suggests renewed buying interest.
“With the technical structure turning favourable, investors may consider accumulating the stock within the recommended range,” said Mishra.
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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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