Stocks to buy for short term: The Indian stock market benchmark, Nifty 50, ended above 25,700 on Friday, October 17, extending gains to the third consecutive session. On a weekly scale, too, the index rose for the third consecutive week on stable Q2 results and valuation comfort in large-caps.
The coming week is a truncated one due to the Diwali holiday. on Tuesday, October 21, for Diwali and Laxmi Pujan, and on Wednesday, October 22, for Diwali Balipratipada.
In the coming week, news flows on US tariffs and trade deals, Q2 earnings trends, and the rupee’s movement will dictate the market movement.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, underscored that the Nifty 50 is currently above all key moving averages, reflecting strong underlying trend strength. On the indicator front, MACD has generated a bullish crossover, which acted as a catalyst for the recent rally.
Patel said from the September 2025 bottom of 24,587.70, the Nifty 50 has rallied 1,194 points, translating into 4.86 per cent gains in a short span, without any meaningful pullback.
“At this juncture, the index appears overextended, and a brief profit-booking or sideways correction over the next three to four sessions cannot be ruled out. Immediate support is placed at 25,500–25,400, while resistance is seen in the 25,800–26,000 zone,” said Patel.
“Similar to the Nifty 50, Bank Nifty too looks overextended, which raises the probability of a short-term pullback or consolidation in the coming sessions. Supports are placed at 57,300 and 57,000, while resistance is seen around 58,000–58,200,” Patel said.
Overall, Patel said, while the medium-term structure remains bullish, a short-term corrective phase or range-bound action is healthy for the market after such a strong up move.
“Traders should adopt a buy-on-dips approach, keeping a close watch on support zones for fresh entry opportunities,” said Patel.
Stock picks for the short term
Jigar Patel recommends buying shares of BDL, Tata Power, and VBL for the next one to two weeks.
Bharat Dynamics (BDL) | Previous close: ₹1,540 | Buying range: ₹1,550–1,500 | Target price: ₹1,725 | Stop loss: ₹1,410
Patel said has shown strong base creation near the 200 EMA and 200 SMA, indicating a solid demand zone and long-term support.
A trendline breakout has recently been confirmed, accompanied by a surge in volume, reflecting renewed bullish participation.
On the momentum front, the RSI is also breaking out from its trendline, further strengthening the bullish outlook.
This confluence of signals suggests that the stock may be gearing up for an upward move.
“One can initiate long positions in the ₹1,550–1,500 zone with an upside target of ₹1,725. A stop loss should be placed below ₹1,410 on a daily closing basis to manage risk effectively. A sustained move above the breakout zone could accelerate the momentum and open the door for further gains,” said Patel.
Tata Power Company | Previous close: ₹397.80 | Buying range: ₹400–395 | Target price: ₹435 | Stop loss: ₹375
Patel pointed out that has been witnessing strong consolidation above the 200 EMA and 200 SMA, indicating firm support and base building at lower levels.
Recently, the stock has confirmed a trendline breakout, supported by a MACD bullish crossover just above the zero line, signalling strengthening momentum.
“This confluence of technical signals points towards a potential continuation of the uptrend. Traders may consider going long in the ₹400–395 zone for an upside target of ₹435, while maintaining a stop-loss at ₹375 on a daily closing basis,” said Patel.
“A sustained move above the breakout zone could attract fresh buying interest and lead to a strong follow-through rally in the near term,” Patel said.
Varun Beverages (VBL) | Previous close: ₹461.55 | Buying range: ₹463–455 | Target price: ₹505 | Stop loss: ₹430
Patel pointed out that has witnessed a sharp correction of nearly 19 per cent from its recent peak of around ₹534 and is currently trading near the ₹460 mark.
Encouragingly, the stock has started forming a higher high and higher low structure, signalling early strength.
“A bullish alternate bat pattern is visible in the ₹435–440 support zone, accompanied by hidden bullish divergence on the MACD daily chart, which indicates underlying buying momentum,” said Patel.
Adding to the positive setup, a parabolic SAR breakout has also emerged, further supporting a potential trend reversal.
“Technically, this confluence of signals suggests a favourable risk-reward entry. Traders are advised to buy in the ₹463–455 zone with a target of ₹505 and a stop loss at ₹430 on a daily closing basis. Sustained momentum above the recent swing high may accelerate the upside in the coming sessions,” Patel said.
Read all market-related news
Read more stories by
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.