Stocks to buy for the short term: Escalating tensions in West Asia, which drove crude oil prices above $90 per barrel and triggered fresh inflation concerns, the rupee’s weakness, and heavy FII (foreign institutional investors) selling dragged the Sensex and the Nifty down by nearly 3% each for the week ending March 6. Both indices extended losses to their second consecutive week.
The Nifty 50 is now more than 7% down from its record high of 26,373, which it hit on January 5 this year. The BSE Sensex has crashed more than 8% from its all-time high of 86,159, reached on December 1 last year.
On Friday, the Nifty 50 touched an intraday low of 24,415, but eventually settled at 24,450. Traders closely monitor the crucial support for the index at 24,000, which now holds significant importance for the near-term.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that the broader market is currently undergoing a corrective phase after failing to sustain above the 25,800–26,000 resistance zone during the previous rally.
Following this rejection, the Nifty slipped toward the 24,300 region, where it started showing early signs of stabilisation. However, the recent decline is still unfolding within a broader rising channel visible on the weekly chart, suggesting that the long-term bullish structure remains intact for now.
“The index is currently hovering near a strong confluence support zone between 24,000 and 24,300, which combines a rising weekly trendline with a horizontal demand zone, making this area technically significant,” Patel observed.
Patel underscored that the price reactions from recent lows suggest that buyers are beginning to defend this support region, indicating that downside momentum may gradually weaken.
Additionally, there are early signals of a possible positive divergence on the daily RSI, a technical condition that often appears near the end of corrective phases and may precede market stabilisation or a short-term bounce, Patel added.
Therefore, Patel believes even if external or geopolitical developments create intermittent volatility, the probability of the index sustaining below the 24,000 level appears relatively limited at this stage.
“As long as 24,000 holds on a weekly closing basis, the ongoing weakness can be viewed as a healthy pullback within a broader uptrend. From a medium-term perspective, any dip toward the 24,000–24,300 zone could offer an attractive opportunity for gradual portfolio accumulation,” said Patel.
“On the upside, 25,100 now acts as the immediate hurdle, as it coincides with a previous price gap region, and a decisive weekly close above this level would signal that the correction has likely ended, potentially paving the way for a fresh upward move toward new highs in the coming months. However, a weekly close below 24,000 would weaken the current bullish framework and require a reassessment of the broader market outlook,” Patel said.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next one to two weeks:
Bharat Dynamics (BDL) | Previous close: ₹1,356.70 | Buying zone: ₹1,360– ₹1,330 | Target price: ₹1,580 | Stop loss: ₹1,220
Patel highlighted that BDL shares stabilised near the ₹1,220– ₹1,250 zone, which coincides with a previous demand area, indicating strong buying interest at lower levels.
Technical indicators are also turning supportive, as a bullish divergence is visible on both RSI and Stochastics, suggesting that downside momentum is weakening and a potential upward move may develop.
In addition, a noticeable surge in trading volumes reflects renewed participation from market participants.
“Considering this improving technical structure, traders may consider buying the stock in the ₹1,360– ₹1,330 zone. The setup offers an upside target of ₹1,580, while ₹1,220 should be maintained as a stop loss to manage risk in case the price fails to sustain above the demand zone,” said Patel.
Mazagon Dock Shipbuilders | Previous close: ₹2,471.90 | Buying zone: ₹2,480– ₹2,400 | Target price: ₹2,650 | Stop loss: ₹2,300
According to Patel, a notable surge in volumes from lower levels indicates renewed buying interest and accumulation in Mazagon Dock shares.
Technically, the price has broken out of a regression channel, supported by a strong Pearson R score of 0.93, which suggests a well-defined and reliable trend structure.
Momentum indicators are also turning favourable. The MACD has generated a bullish crossover, typically seen as an early signal of improving upward momentum.
At the same time, the RSI is hovering near the 60 level, indicating strengthening momentum while still leaving room for further upside before reaching overbought territory.
“Considering the improving technical setup, traders may consider buying the stock in the ₹2,480– ₹2,400 zone. The trade setup offers an upside target of ₹2,650, while a stop loss should be maintained at ₹2,300 on a closing basis to manage downside risk,” Patel said.
Natco Pharma | Previous close: ₹1,019.70 | Buying zone: ₹1,025– ₹1,000 | Target price: ₹1,165 | Stop loss: ₹925
Patel pointed out that Natco Pharma has broken out above a falling trendline with a noticeable rise in volumes, indicating a potential shift in momentum.
Technically, the setup is further supported by the RSI placed near the 66 level, reflecting strengthening momentum, while the MACD has also generated a bullish crossover, signalling improving trend strength.
The breakout suggests that the stock may continue its upward trajectory if buying interest sustains.
“Traders may consider accumulating the stock in a staggered manner in the ₹1,025– ₹1,000 zone. The trade setup indicates a potential upside target of ₹1,165, while a stop loss should be maintained at ₹925 to manage downside risk,” said Patel.
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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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