Stocks to buy for the short term: Indian equities remained volatile during the week ended Friday, 29 May, amid renewed US-Iran tensions, fluctuating crude oil prices, persistent FII selling, and MSCI-related rebalancing.
Benchmark ended at 23,547.75 on Friday, losing 1.50%. For the week, the index shed 0.72%, while on a monthly scale, it declined nearly 2% in May after a 7.5% rise in April.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the Nifty 50 has now retreated towards the critical 23,300–23,100 support band, which remains the key level for the medium-term trend.
Patel believes that as long as this zone holds, the broader structure remains constructive.
“On the upside, 23,800 is the immediate hurdle, while a decisive move above 24,100 is required to trigger the next leg of the rally. Until then, the index is likely to remain range-bound,” said Patel.
For Bank Nifty, the breakout above 54,500 remains valid, and as long as the index sustains above the 52,800–53,200 support zone, the bullish bias is intact, said Patel, adding that a decisive move above 55,500 could open the doors for an advance towards 56,000–58,000.
“We continue to maintain a positive outlook on the banking space and expect it to outperform the broader market,” Patel said.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:
JSW Energy | Previous close: ₹595.05 | Target price: ₹680 | Stop loss: ₹540
As per Patel, shares have recently delivered a breakout on the weekly chart, signalling a positive shift in trend and momentum.
Supporting this bullish setup, key momentum indicators such as RSI, MACD, and DMI are all showing strength, indicating that buying interest remains intact.
The breakout is supported by an improving technical structure, which increases the likelihood of further upside in the coming weeks.
“Traders may consider accumulating the stock in the ₹595– ₹585 zone. A strict stop loss at ₹540 on a closing basis should be maintained to manage risk. On the upside, the stock has the potential to rally towards the ₹680 target,” said Patel.
AIA Engineering | Previous close: ₹4,503.60 | Target price: ₹5,000 | Stop loss: 4,000
Patel said a breakout above the falling trendline, accompanied by a surge in volumes, signals a potential shift in momentum and strengthening bullish sentiment.
share price is further supported by positive readings from key indicators such as RSI, MACD, DMI, and AIGEN-G, all of which continue to point towards sustained buying interest.
The overall technical structure remains constructive, suggesting that any dip could provide a favourable entry opportunity.
“Traders may consider accumulating on declines up to ₹4,300, while maintaining a strict stop-loss at ₹4,000 on a closing basis. On the upside, the stock has the potential to move towards the ₹5,000 target in the coming weeks,” said Patel.
Adani Energy Solutions | Previous close: ₹1,513.30 | Target price: ₹1,650 | Stop loss: ₹1,375
As per Patel, a breakout above the previous swing high, as depicted in the chart, indicates a continuation of the bullish trend and strengthening price momentum of shares.
Adding to the positive outlook, key momentum indicators such as RSI, MACD, and DMI have all turned bullish, suggesting sustained buying interest and the potential for further upside.
The overall technical structure remains strong, making any near-term correction a potential buying opportunity.
“Traders may consider accumulating on dips in the ₹1,450– ₹1,480 zone, with a strict stop-loss at ₹1,375 on a closing basis. On the upside, the stock has the potential to rally towards the ₹1,650 target in the coming weeks,” said Patel.
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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.