Stocks to buy for the short term: The benchmark Nifty 50 slipped over half a per cent in Monday’s morning trade, 16 December, as weak global cues weighed on market sentiment. Investors were cautious ahead of major economic data releases and upcoming central bank meetings.
The Nifty 50 jumped almost 1 per cent in the previous session and reclaimed the 50-day SMA (simple moving average) of 24,400.
According to Shrikant Chouhan, the head of equity research at Kotak Securities, for positional traders, 24,400 and 24,300 would be crucial support zones. As long as the market trades above these levels, a bullish trend will likely continue. On the higher side, Chouhan believes the market could rally up to 25,000, with further upside potentially lifting the index to 25,200.
Experts say one must be cautious when picking stocks at this juncture. Based on recommendations by three experts, here are nine stocks that may rise 7-14 per cent in the next three to four weeks. Take a look:
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers
Reliance Industries | Previous close: ₹1,272.85 | Buying range: ₹1,240 to ₹1,275 | Target price: ₹1,385 | Stop loss: ₹1,195 | Upside potential: 9%
Reliance has been following a textbook Elliott Wave 5-wave structure on the daily chart since March 2023.
This impulsive rally reached a decisive conclusion in July 2024, marking the end of the fifth wave and initiating a corrective ABC phase.
Such corrections are typical after completing a 5-wave cycle and often retrace to significant Fibonacci levels.
The ongoing correction appears to be approaching a critical support zone in the ₹1,220-1,240 range, aligning with the 61.8 per cent Fibonacci retracement level of the entire 5-wave structure.
This level is important as it typically serves as a strong support during corrective phases, indicating the potential for base formation.
Moreover, these levels coincide with the completion of a bullish Crab harmonic pattern, further strengthening the case for a reversal.
“Given this confluence of technical indicators, traders can consider initiating long positions in the ₹1,240 to ₹1,275 range, placing a protective stop loss below ₹1,195 to manage risk. The anticipated upside target for this trade is around ₹1,385, offering a favourable risk-to-reward ratio as the stock is poised to resume its upward trajectory following the correction,” said Patel.
HDFC Bank | Previous close: ₹1,871.75 | Buying range: ₹1,850 to ₹1,875 | Target price: ₹2,050 | Stop loss: ₹1,770 | Upside potential: 10%
Historically, HDFC Bank has faced significant resistance in the ₹1,790–1,800 zone, with the stock reversing from this level on three to four notable occasions.
This consistent rejection established the area as a critical hurdle, indicating strong supply and selling pressure.
However, at the current juncture, the stock has decisively breached the ₹1,800 level, showcasing bullish momentum, and is now trading around the ₹1,870 mark.
Notably, the stock has surpassed the R4 camarilla pivot resistance, often regarded as the final line of resistance where fresh buying typically emerges to propel prices higher.
“We recommend initiating long positions in the ₹1,850 to ₹1,875 range, with an upside target of ₹2,050, near the R5 camarilla pivot resistance. A stop loss should be set below ₹1,770 on a daily closing basis to manage risk effectively,” said Patel.
Hindustan Unilever | Previous close: ₹2,390.10 | Buying range: ₹2,350 to ₹2,400 | Target price: ₹2,620 | Stop loss: ₹2,250 | Upside potential: 10%
Hindustan Unilever (HUL) has undergone a sharp correction of 645 points, or 21 per cent, from its peak of 3,035, bringing it close to a critical support level near the previous breakout zone.
This level also aligns with the S5 camarilla pivot support zone, strengthening its significance.
Additionally, the appearance of a bullish engulfing candlestick pattern in the previous trading session adds to the likelihood of a reversal.
The daily chart reveals a bullish divergence, where the price has formed three consecutive lower lows, but the RSI (Relative Strength Index) has simultaneously created three consecutive higher lows.
This divergence signals a potential trend reversal, making HUL an attractive buying opportunity.
“We recommend accumulating HUL in the ₹2,350 to ₹2,400 range, with a target price of ₹2,620. A stop loss should be placed at ₹2,250 on a daily closing basis to manage downside risk,” said Patel.
Vishnu Kant Upadhyay, AVP of Research & Advisory at Master Capital Services
Dabur India | Previous close: ₹512.80 | Buying price: ₹510 | Target price: ₹550 | Stop loss: ₹487 | Upside potential: 7%
Dabur India has shown resilience as prices found strong support near the ₹500-490 zone, marking a critical demand area.
The stock displays signs of a potential reversal, with RSI bouncing from the oversold territory, indicating improving momentum.
The MACD histogram is also narrowing, hinting at a possible bullish crossover.
“Prices are attempting to reclaim the ₹550 level, which, if sustained, could act as a catalyst for further upside towards ₹570,” said Upadhyay.
Max Financial Services | Previous close: ₹1,127.85 | Buying price: ₹1,120 | Target price: ₹1,210, ₹1,230 | Stop loss: ₹1,070 | Upside potential: 9%
Max Financial Services (MFSL) has displayed a strong bounce from the crucial support zone near the 200-day EMA, currently positioned around ₹1,085, reflecting solid buying interest.
The RSI, though in the lower band, is beginning to stabilize, indicating a potential recovery in momentum.
The MACD histogram shows signs of a possible reversal, hinting at waning bearish pressure. “Prices are all set for ₹1,210 and higher.
The stock’s ability to form higher lows reinforces the likelihood of a sustained upward trajectory,” Upadhyay said.
Chalet Hotels | Previous close: ₹1,007.55 | Buying price: ₹1,000 | Target price: ₹1,100, ₹1,150 | Stop loss: ₹920 | Upside potential: 14%
Prices decisively crossed above their crucial horizontal resistance at ₹924, accompanied by a strong increase in trading volumes.
The stock has steadily risen above a well-defined uptrend line, indicating a strong buying momentum. The recent breakout from the horizontal resistance level further solidifies the bullish sentiment.
The RSI near the 70 mark suggests that the stock is overbought in the short term, but this could be a sign of intense buying pressure.
“Traders should keep an eye on the stock for potential upside targets of ₹1,100 level in upcoming sessions,” Upadhyay said.
Mandar Bhojane, Equity Research Analyst, Choice Broking
Godrej Properties | Previous close: ₹2,926.95 | Buying price: ₹2,926.95 | Target price: ₹3,200, ₹3,300 | Stop loss: ₹2,760 | Upside potential: 13%
Godrej Properties has recently formed a bullish pennant pattern on the daily chart.
The price has successfully retested the breakout level, enhancing the pattern’s reliability.
Additionally, the increase in trading volumes indicates strong buying interest and the potential for sustained upward momentum.
“A sustained close above ₹2,940 could act as a catalyst for reaching short-term targets of ₹3,200 and ₹3,300. On the downside, key support at ₹2,870 offers an excellent buying opportunity during pullbacks. To manage risk effectively, a stop loss at ₹2,760 is advised to safeguard against unexpected market movements,” said Bhojane.
Bharat Dynamics (BDL) | Previous close: ₹1,260.95 | Buying price: ₹1,260.95 | Target price: ₹1400, ₹1,440 | Stop loss: ₹1,190 | Upside potential: 14%
BDL has recently broken out of a daily range. This breakout has been accompanied by a notable increase in trading volumes, highlighting strong buying interest and the potential for continued bullish momentum.
The RSI, currently at 69.7, is trending upwards, reflecting a strengthening bullish sentiment.
“A decisive close above ₹1,270 could pave the way for short-term targets of ₹1,400 and ₹1,440. On the downside, immediate support is at ₹1,240, providing a good buying opportunity on dips. A stop loss at ₹1,190 is recommended to manage risk and protect against unexpected reversals,” said Bhojane.
CRISIL | Previous close: ₹5,817.75 | Buying price: ₹5,817.75 | Target price: ₹6,500, ₹6,600 | Stop loss: ₹5,425 | Upside potential: 13%
CRISIL has recently broken out of a rounding bottom pattern on the daily chart. The stock is consolidating above the breakout level, indicating a potential for another upward movement.
This breakout is supported by a significant surge in trading volume, reinforcing strong bullish momentum.
“If the price sustains above ₹5,800, it could open the door to short-term targets of ₹6,500 and ₹6,600.
On the downside, immediate support is visible at ₹5,660, which presents a favourable buying opportunity during pullbacks.
To effectively manage risk, a stop loss at ₹5,425 is recommended to guard against potential reversals,” said Bhojane.
Read all market-related news here
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.
