Stocks to buy for the short term: Stock market benchmarks, the Sensex and the Nifty 50, ended lower on Thursday, 16 April, due to profit booking in select heavyweights across sectors.
The settled at 24,196.75, down 0.14%. However, the mid and small-cap indices ended higher.
The Nifty Midcap 100 index ended 0.63% higher, while the Nifty Smallcap 100 index rose by 0.89%.
According to experts, news flows surrounding the US-Iran conflict will remain a key trigger for markets even as Q4 earnings may trigger stock and sector-specific movements.
Experts also recommend buying the dips, focusing on stock selection while monitoring earnings trends and geopolitical developments.
“We reiterate our positive stance on the Nifty and recommend a ‘buy on dips’ approach, focusing on stock selection based on rotational sectoral trends. At the same time, participants should closely monitor earnings developments and geopolitical cues for further directional clarity,” said Ajit Mishra, SVP of Research at Religare Broking.
Stock picks for the short term
Ajit Mishra recommends buying the following three stocks for the next 1-2 weeks:
Bharat Electronics (BEL) | Previous close: ₹455.65 | Target price: ₹485 | Stop loss: ₹441
According to Mishra, shares have been trading within an upward-sloping channel over the past several months and have recently witnessed a strong rebound from the lower trendline, which aligns with the 200-day EMA.
The stock has successfully surpassed its intermediate resistance and is gradually advancing toward the upper band of the channel, as well as its all-time high levels.
“The overall momentum remains positive, with the stock sustaining above its key moving averages. Additionally, momentum indicators continue to reflect strength, reinforcing the prevailing uptrend,” said Mishra.
Power Grid Corporation of India | Previous close: ₹312.25 | Target price: ₹336 | Stop loss: ₹298
Mishra pointed out that power sector stocks continue to gain traction, and among them, presents a fresh buying opportunity near a key pivot level.
Following a breakout from its corrective phase, the stock entered a tight consolidation range, forming a base above the neckline and important weekly moving averages, and has recently witnessed a fresh breakout from this base, signalling the start of a new leg of upward movement after accumulation.
“Considering the supportive sector momentum and strong technical structure, traders may consider initiating long positions within the specified range,” said Mishra.
Steel Authority of India (SAIL) | Previous close: ₹171.32 | Target price: ₹182 | Stop loss: ₹166
According to Mishra, the metal pack continues to exhibit strength, with maintaining its upward trajectory in line with its peers, steadily forming higher highs after rebounding from a role-reversal support zone and now approaching its previous swing high.
“The stock is trading above its short- to long-term moving averages, which are trending upward and well-aligned, indicating sustained positive momentum and underlying strength in price action, and given this favourable setup, one may consider initiating long positions as per the specified levels,” said Mishra.
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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.