Stocks to buy for short term: The Indian stock market ended the volatile session on a positive note on Thursday, 14 May. The gained 50 points, or 0.07%, to close at 74,608.98, while the rose by 33 points, or 0.14%, to settle at 23,412.60.
The stock market is expected to remain volatile in the near term due to geopolitical factors, swinging crude oil prices and sector and stock-specific movement amid the Q4 earnings season.
Amol Athawale, VP – Technical Research, Kotak Securities, pointed out that from a technical perspective, the Nifty failed to sustain above the important resistance level of 23,500, which indicates continued weakness.
Athawale said the index is trading below their short-term moving averages, while intraday charts continue to reflect a correction pattern, suggesting the possibility of further downside.
“The near-term market outlook remains cautious to bearish. However, if the market manages to move above 23,500, a relief rally could extend toward 23,650–23,700. On the downside, immediate support is placed at 23,350. A breach below these levels could drag the indices toward 23,250, and further weakness may push them down to 23,175,” said Athawale.
“Given the current choppy and directionless market conditions, traders are advised to adopt a level-based trading strategy rather than taking aggressive directional positions,” said Athawale.
Stock picks for the short term
Amol Athawale recommends the following three stocks to buy for the next 1-2 weeks:
Bajaj Finserv | Previous close: ₹1,728.90 | Target price: ₹1,850 | Stop loss: ₹1,665
Athawale said after a declining trend, shares rebounded and are in the accumulation phase, where they are trading in a range-bound mode on the daily scale.
However, currently the stock is available near the lower boundary of the range, which will act as a good support level.
“The stock is expected to rebound and witness a fresh move from the current levels with a favourable risk and reward perspective. As long as it is trading above ₹1,665, the bullish texture is likely to continue. Above which, the stock could move up to ₹1,850,” said Athawale.
National Aluminium Company | Previous close: ₹408.25 | Target price: ₹435 | Stop loss: ₹393
Athawale pointed out that after declining from the higher levels, rebounded from its support zone and witnessed a recovery from the lower levels.
Additionally, on the daily charts, the stock has given a breakout from its sloping channel formation. The upticks in the stock suggest a new leg of the bullish trend from the current levels.
“For the next few trading sessions, ₹393 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹435,” said Athawale.
DCB Bank | Previous close: ₹182.02 | Target price: ₹195 | Stop loss: ₹175
Athawale highlighted that after declining from higher levels, shares found support near their retracement zone and rebounded, showing a steady recovery from their recent lows.
On the daily chart, it is likely to break out of a downward-sloping channel, indicating strengthening momentum.
This price action signals the potential start of a fresh bullish phase from current levels.
“For the upcoming trading sessions, the ₹175 level will act as a key trend level. If the stock sustains above this mark, it could continue its upward movement and gradually advance towards the ₹195 level in the near term,” said Athawale.
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Disclaimer: This story 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.