Top stocks to buy or sell for the short term: Indian equities ended the September 21–25 week on a weak note amid heightened volatility. Nifty fell sharply during the week, pressured by rising global bond yields, crude oil above $100, a weaker rupee and selling across financial stocks. India VIX also moved higher, reflecting increased market uncertainty.
The index extended its losing streak to 7 consecutive weeks – its longest since the COVID pandemic.
In intraday trade on Monday, 28 September, the Nifty declined 1.4% to hit an intraday low of 22,807.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the index has now declined for seven consecutive weeks and is trading below the crucial 23,000 support.
“On the upside, 23,300–23,600 is the key resistance zone. A sustained move above this range could signal improving momentum, while 23,000–22,700 remains the broader support zone,” said Patel.
“Bank Nifty is also under pressure near 55,500, with 55,000 acting as the next major support and aligning with the 61.8% retracement. Positive divergence on the daily chart provides some scope for stabilisation. On the upside, 56,000 remains the immediate hurdle,” Patel said.
Stock picks for the short term
Jindal Stainless | Buy | Target price: ₹800 | Stop loss: ₹725
Patel pointed out that Jindal Stainless is showing signs of strength after finding support near its important 200-DEMA, indicating that the long-term trend support is currently holding.
The stock has witnessed buying interest around this key moving average, making the current zone technically significant.
Momentum indicators are also supportive, with both daily and weekly RSI sustaining above the 50 level, indicating that the underlying momentum remains positive across multiple time frames.
“As long as Jindal Stainless holds above the ₹725 stop loss zone, the stock can continue to maintain its positive structure. Traders can consider buying the stock with a stop loss at ₹725 and an initial target of ₹800,” said Patel.
Mahindra & Mahindra | Buy | Target price: ₹3,180 | Stop loss: ₹2,950
According to Patel, Mahindra & Mahindra (M&M) is showing signs of a potential bullish reversal on the daily chart.
A bullish engulfing candlestick pattern has emerged near the stock’s previous demand zone, indicating renewed buying interest at an important support area.
This setup is further supported by the presence of a 9-period bullish divergence on the RSI, suggesting that downside momentum may be weakening even as the price has remained under pressure.
“The combination of price action and momentum indicators improves the probability of a recovery from current levels. Traders can consider buying M&M with a stop-loss at ₹2,950 on a closing basis. If the stock sustains above the immediate resistance levels and buying momentum continues, it could move towards the ₹3,180 target,” said Patel.
Adani Enterprises | Sell between ₹2,950–2,900 | Target price: ₹2,650 | Stop loss: ₹3,050
Patel said Adani Enterprises is showing signs of weakening momentum on the daily chart.
“A bearish divergence has emerged in RSI, followed by a negative cross in the 10- and 20-DEMA structure, indicating that the recent uptrend may be losing strength. The RSI is also struggling to sustain momentum and has repeatedly faced difficulty in crossing the 60–70 zone, suggesting limited upside momentum,” said Patel.
“Considering the combination of weakening price momentum and negative technical signals, the stock may remain vulnerable to a corrective move. Traders can consider selling in the ₹2,950–2,900 zone, with a stop loss at ₹3,050 and a target of ₹2,650,” Patel 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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