Stocks to buy for short term: Indian stock market benchmark Nifty 50 ended in the red for the second consecutive session on Monday, February 3, dragged by concerns over US President Donald Trump’s tariff policies and weak capex allocation in the Union Budget 2025.
The Nifty 50 settled at 23,361.05 on Monday, with a loss of 0.52. The index is now 11 per cent down from its all-time high of 26,277.35 hit on September 27 last year.
According to Rupak De, Senior Technical Analyst at LKP Securities, on the daily chart, the Nifty 50 managed to close above the critical 21EMA; however, sentiment appears fragile, and support may be broken in the near term.
“On the lower end, support is placed at 23,200 and 23,100, while on the higher end, resistance is placed at 23,400,” said De.
The focus is now on the outcome of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting on Friday.
As the market sentiment remains cautious, experts suggest picking stocks with favourable technical indicators for the short term. Vishnu Kant Upadhyay of Master Capital Services and Mandar Bhojane of Choice Broking recommend buying the below six stocks for the next 2-3 weeks. Take a look:
Shares to buy
Vishnu Kant Upadhyay, AVP – Research and Advisory at Master Capital Services
IndusInd Bank | Previous close: ₹1,012.70 | Target price: ₹1,088 | Stop loss: ₹945
IndusInd Bank has shown promising recovery, as prices have decisively moved above the 21-day and 50-day EMAs, signalling a shift in momentum.
Rising volumes support the recent breakout, indicating fresh buying interest. The RSI has crossed the 50 mark, reflecting strengthening bullish sentiment.
Additionally, the MACD line is narrowing its gap with the signal line, suggesting the potential for a bullish crossover.
“The stock appears poised to extend its upward momentum, with immediate resistance near ₹1,088 and support at ₹945. Traders can consider this positive setup for short-term gains as the trend reversal gains traction,” said Upadhyay.
Mahanagar Gas (MGL) | Previous close: ₹1,318.80 | Target price: ₹1,480 | Stop loss: ₹1,282
MGL has witnessed a strong bullish breakout above its key resistance zone near ₹1,324, supported by robust volumes.
The stock trades comfortably above the 21-day and 50-day EMAs, signalling a bullish continuation. The price action indicates the formation of a rounding bottom pattern, which is a bullish reversal structure.
The RSI is holding above the 60 mark, reflecting sustained positive momentum, while the MACD has witnessed a bullish crossover, reinforcing upward prospects.
Bajaj Auto | Previous close: ₹8,926.55 | Target price: ₹9,864 | Stop loss: ₹8,525
Bajaj Auto has witnessed a sharp rebound from its recent lows, breaking above the key resistance zone near ₹8,800 with strong bullish momentum. The stock now trades above the 21-day and 50-day EMAs, indicating a trend reversal to the upside.
The price action suggests a double-bottom formation around 8400, which is a bullish reversal pattern. RSI has surged above the 60 mark, confirming strength in momentum, while the MACD is narrowing its bearish histogram, hinting at a potential bullish crossover.
Immediate resistance is seen at ₹9,864, which is quite approachable if prices remain well above the 21-day EMA.
Mandar Bhojane, Equity Research Analyst, Choice Broking
Bharti Airtel | Previous close: ₹1,652.35 | Target price: 1,800, ₹1,830 | Stop loss: ₹1,570
Bharti Airtel is showing strong consolidation just below a descending trendline.
Recently, the price broke out from this range and formed a bullish candle. The increase in trading volumes signals growing buying interest, suggesting the potential for further upside.
The RSI, currently at 58 and trending upward, indicates improving momentum, aligning with a bullish outlook.
Bhojane said a decisive close above ₹1,665 would confirm the breakout, potentially triggering a strong upward move toward short-term targets of ₹1,800 and ₹1,830.
Bhojane said key support lies at ₹1,625, offering a low-risk entry point on dips. To manage risk, a stop-loss should be placed at ₹1,570, as a break below this level would invalidate the bullish setup.
Century Plyboards (India) | Previous close: ₹830.55 | Target price: ₹910, ₹940 | Stop loss: ₹780
Century Plyboards is on the verge of breaking out of a symmetrical triangle on the daily chart. This move, accompanied by a surge in trading volumes, further strengthens the positive outlook.
“If the stock sustains a close above ₹845, it could trigger a rally towards ₹910 and ₹940. On the downside, immediate support at ₹810 offers a favourable entry point for investors, while a stop-loss at ₹780 is recommended to manage risks,” said Bhojane.
Mahindra & Mahindra Financial Services | Previous close: ₹291.85 | Target price: ₹330, ₹340 | Stop loss: ₹275
Mahindra & Mahindra Financial Services has recently broken out of a symmetrical triangle.
The price retested the breakout level and has now given a fresh breakout by forming a bullish candle on the daily chart.
This move, accompanied by a surge in trading volumes, further strengthens the positive outlook.
“If the stock sustains a close above ₹295, it could trigger a rally towards ₹330 and ₹340. On the downside, immediate support at ₹284 offers a favourable entry point for investors, while a stop-loss at ₹275 is recommended to manage risks,” Bhojane said.
“The technical setup suggests that Mahindra & Mahindra Financial Services holds a bullish bias, and traders should monitor price action near the ₹295 level for further confirmation of upward momentum,” said Bhojane.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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