Stocks to buy for the short term: The Domestic market ended flat in the previous session amid a lack of fresh triggers and mixed global cues. The closed 0.16 per cent up at 25,763.35. However, the mid and small-cap segments outperformed. The Nifty Midcap 100 closed 0.77 per cent higher, while the Nifty Smallcap 100 gained 0.72 per cent.
The Indian stock market is witnessing stock and sector-specific activity amid the ongoing Q2 results season.
However, focus also remains on FII trends, US tariffs, and macroeconomic indicators.
According to Ajit Mishra, SVP of research at Religare Broking, going ahead, corporate earnings and trade deal developments may guide the market in the absence of major triggers.
Technically, Nifty may consolidate further, with critical support placed around 25,600.
“Amid this setup, we continue to recommend a selective approach, focusing on sectors showing relative strength, and preferring large-cap and large mid-cap stocks for long trades while maintaining moderate position sizes amid global uncertainty,” said Mishra.
Stock picks for the short term
Mishra suggests buying the following three stocks for the next one to two weeks as he sees a favourable technical setup for them.
Grasim Industries | Previous close: ₹2,899.90 | Buy | Target price: ₹3,120 | Stop loss: ₹2,780
Mishra underscored that is displaying renewed momentum after a period of consolidation, standing out as one of the stronger names within the cement and diversified materials space.
On the weekly chart, the stock has broken out from a well-defined base formation near ₹2,800, resuming its uptrend.
The 20-week EMA continues to slope upward, reaffirming the stock’s bullish structure.
The breakout is accompanied by a noticeable rise in volume, signalling strong participation.
“With momentum oscillators also trending positively, the overall setup points toward sustained strength ahead. Participants can use any pause or dip to accumulate as per the mentioned levels,” said Mishra.
Aurobindo Pharma | Previous close: ₹1,158.60 | Buy | Target price: ₹1,300 | Stop loss: ₹1,090
Mishra pointed out that the pharma sector has largely underperformed in the recent recovery, and has mirrored this broader trend, maintaining a consolidation tone.
However, the stock has recently shown early signs of rebound after this year-long corrective phase.
Technically, it has formed a solid base above its long-term 200-week exponential moving average (WEMA), indicating a potential buildup of momentum for a directional breakout.
Moreover, a decisive move above the falling trend line signals the end of the corrective phase and a possible shift toward a structural reversal.
Notably, Aurobindo Pharma has reclaimed its short- to long-term moving averages across multiple timeframes, reinforcing improving positioning and a strengthening bullish bias.
City Union Bank | Previous close: ₹236.04 | Buy | Target price: ₹257 | Stop loss: ₹225
Mishra highlighted the traction in the banking space, and is trading in sync with the trend.
It has recently witnessed a breakout on multiple time frames of late. First, it ended a three-month-long consolidation phase, which also resulted in crossing the multi-year barrier of its record high, i.e. ₹236.52 level, after five years.
“All indications are in favour of a steady uptrend ahead, and participants may consider the recent pause as a buying opportunity and accumulate as per the mentioned 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.