Stocks to buy for the short term: After witnessing healthy buying for four consecutive months (from March to June), the Indian stock market is experiencing a correction in July due to mixed Q1 earnings, slightly stretched valuations, and foreign capital outflow.
In July so far, the Nifty has lost 2.15 per cent. Foreign institutional investors (FIIs) have sold off Indian equities worth ₹16,956 crore in the cash segment this month.
The benchmark index, on Friday, fell below its crucial support of 25,000, ending at 24,968, raising concerns that the market may see further weakness.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, while the breakdown below 25,000 suggests near-term weakness, a decisive move below 24,900 would be essential to confirm a deeper corrective phase.
Patel believes in the absence of such confirmation, a rebound above 25,000 remains a possibility — offering a potential exit window for long-position holders. However, unless the index manages to convincingly surpass the 25,800 mark — a level under close watch in recent weeks — the broader trend remains indecisive and vulnerable.
Stock picks for the short-term
Jigar Patel recommends buying shares of NTPC, Voltas and Sun Pharma for the next two to three weeks.
Varun Beverages (VBL) | Previous close: ₹484.85 | Target price: ₹530 | Stop loss: ₹460
After undergoing a sharp correction of nearly 22 per cent from its recent high of ₹570, VBL has now shown signs of a potential reversal.
The stock has successfully breached a falling trendline on the daily chart, supported by a noticeable increase in volume, a key indicator of renewed buying interest.
Adding to the bullish case, a positive RSI divergence is visible, reinforcing the likelihood of an upward move.
Despite a 7 per cent gain in the past week, the technical setup remains favourable, and a fresh long entry is still justified.
“Traders are advised to adopt a staggered buying approach in the ₹485– ₹475 zone, aiming for an upside target of ₹530. A stop loss should be placed below ₹460 on a daily closing basis to protect against downside risk,” said Patel.
Hero MotoCorp | Previous close: ₹4,396.70 | Target price: ₹4,850 | Stop loss: ₹4,175
Hero MotoCorp recently consolidated within a tight range of ₹4,150– ₹4,375, forming a classic triangle pattern on the charts.
On July 15, 2025, the stock broke out decisively from this formation, accompanied by a significant rise in volume, confirming the validity of the breakout.
This technical strength is further supported by the Camarilla monthly pivot structure, which displayed an inside value relationship — a setup that often precedes sharp directional moves.
The confluence of these factors suggests strong bullish potential in the near term.
“Based on this analysis, traders are advised to consider buying Hero MotoCorp shares in the ₹4,400– ₹4,350 zone, with an expected upside target of ₹4,850. A stop loss should be maintained below ₹4,175 on a daily closing basis to manage risk effectively,” said Patel.
Coal India | Previous close: ₹388.50 | Target price: ₹428 | Stop loss: ₹368
Coal India has been consolidating in a tight range between ₹380 and ₹395, forming a strong base near this support zone.
A recent breakout above a falling trendline suggests a potential shift in momentum, indicating the end of the corrective phase.
Adding strength to this bullish setup, the monthly Camarilla pivot has formed an inside value relationship — a structure often associated with upcoming directional moves.
Notably, in the past three sessions, the stock has repeatedly taken support near the S3 monthly Camarilla pivot, with identical lows in the ₹384– ₹385 range, reinforcing the importance of this support.
“Traders are advised to go long in the ₹390– ₹387 zone, with an upside target of ₹428. A stop loss should be placed below ₹368 on a daily closing basis to manage risk effectively,” said Patel.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, 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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