Stocks to buy: Nifty snapped its two-month winning run, losing 1.2% in August, largely due to renewed tensions between the US and Iran, which drove oil prices higher again.
The start of September has also been weak; for the month so far, it is down 1.25%.
The index on Tuesday, 8 September, closed 0.61% lower at 23,635, inching closer to the key support area of 23,600-23,500, which is the confluence of the previous major gap and the July 2026 low.
According to Pabitro Mukherjee, Deputy Vice President – Technical, Bajaj Broking, the daily stochastic and daily 14-period RSI have approached oversold territory. Hence, Mukherjee believes that the Nifty holding above the support area of 23,600–23,500 will lead to a pullback towards the 50-day EMA, placed around 24,150.
On the higher side, only a move above 24,150 will open upside towards 24,500-24,600 levels in the coming weeks, said Mukherjee.
Overall, over the last three months, the index has been consolidating within the broad range of 23,500-24,600, and Mukherjee expects it to continue this trend in September.
“On the lower side, a breach below the lower band of the last three months range of 23,500 will signal extension of the last 4 weeks corrective decline and open further downside towards the June low of 23,000-23,200 in the coming week,” said Mukherjee.
Stock picks for the short term
Pabitro Mukherjee recommends buying the following five stocks for the next one to six months:
Bharat Heavy Electricals (BHEL) | Previous close: ₹422.15 | Target price: ₹454 | Stop loss: ₹399 | Time period: 1 month
According to Mukherjee, overall structure is positive with higher highs and higher lows in the weekly and monthly charts signalling strength.
The share price is forming a base around the 50-day EMA and the rising demand line connecting the last two months’ lows, highlighting a positive bias.
The daily MACD is at its 9-period average and is likely to rebound in the coming sessions, thus supporting a positive bias.
“The stock is likely to resume an upward move and head towards ₹454 levels in the coming month, the 123.6% external retracement of the previous decline from ₹446 to ₹395,” said Mukherjee.
Yatra Online | Previous close: ₹113.64 | Target price: ₹126 | Stop loss: ₹108 | Time period: 1 month
Mukherjee underscored that the share price of has carved out a symmetrical triangle pattern over the past four months.
“The coiling of price within this triangular structure suggests a state of equilibrium between demand and supply forces, and we anticipate an imminent breakout on the upside as the apex of the triangle is approached,” said Mukherjee.
The stock is sustaining above its 50-day EMA, signalling a positive bias and supporting extension of the current pullback.
The daily 14-period RSI is holding above its 9-period average, supporting the stock’s positive bias.
“We expect the stock to head towards ₹126, being the price equality of the previous up move from ₹101 to ₹121, as projected from the recent trough of ₹106, signals upside towards ₹126 levels in the coming month,” said Mukherjee.
Apollo Micro Systems | Previous close: ₹417.90 | Target price: ₹442 | Stop loss: ₹374 | Time period: 3 months
According to Mukherjee, the share price of is rebounding after forming a higher base around the 50-day EMA and the 50% retracement of the previous up move from ₹283 to ₹466. It offers a fresh entry opportunity with a favourable risk-reward opportunity.
The stock has already taken 9 weeks to retrace just 50% of its previous seven-week rally from ₹283 to ₹466. A shallow retracement in equal time highlights strength and the formation of a higher base.
On the momentum front, the daily 14-period RSI has witnessed a bullish crossover, further strengthening the positive bias.
“Going ahead, the stock is expected to move towards ₹442, which coincides with the 80% retracement level of the recent decline from ₹466 to ₹374,” said Mukherjee.
IIFL Finance | Previous close: ₹628 | Target price: ₹723 | Stop loss: ₹603 | Time period: 6 months
Mukherjee said is in an uptrend, forming higher highs and higher lows on the long-term chart.
The last two weeks breather saw the stock testing the recent breakout area thus offers fresh entry opportunity for the next leg of up move.
The last eight months’ price action has taken the shape of a rounding formation, and the stock is seen breaking above the same signalling acceleration of the up move in the coming quarters.
On the longer-term chart, the stock is at the cusp of breaking above the last three years’ consolidation range of ₹686- ₹280, highlighting a structural turnaround and the resumption of the long-term uptrend in the stock.
“The stock in the recent pullback has managed to hold above the 50 days EMA which has acted as major support and is currently placed at ₹603 levels. Stock holding above the same will keep the bias positive,” said Mukherjee.
“The stock is expected to extend its up move and head towards ₹723 in the coming quarters being the 123.6% external retracement of the recent breather from ₹705 to ₹615,” Mukherjee said.
Central Mine Planning & Design Institute (CMPDI) | Previous close: ₹236.85 | Target price: ₹270 | Stop loss: ₹223 | Time period: 6 months
According to Mukherjee, has recently generated a falling channel breakout, joining the last two months’ price action, thus offering an entry opportunity.
The share price of CMPDI has rebounded, taking support at the previous major low of June 2026, signalling a potential double-bottom formation on the chart.
The daily MACD has generated a buy signal, moving above its 9-period average, thus supporting the positive bias.
“We expect stocks to extend their previous week’s up move and head towards ₹270 in the coming months, being the 80% retracement of the entire previous decline from ₹283 to ₹219,” said Mukherjee.
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Disclaimer: This article 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.