Stocks to buy for the short term: The Indian stock market has been under strong pressure of late amid the US-Iran war, surging crude oil prices, and foreign capital outflow.
The closed at 24,480.50, down 385 points, or 1.55%, on Wednesday, February 4. The Nifty 50 has declined 1,016 points, or 4%, in three consecutive sessions.
Amol Athawale, VP – Technical Research at Kotak Securities, believes that the short-term outlook is weak but oversold.
Athawale said that for traders, 24,300 and 78,500 would act as key support zones.
“If the market sustains above this level, the immediate resistance would be at 24,600 and 79,500. Above 24,600 and 79,500, it could move up to 24,800-25,000/80,000-80,500. Conversely, a decline below 24,300/78,500 could change the sentiment,” said Athawale.
“Below this, the market could slip to 24,100-24,000/78,000-77,800. The current market texture is extremely volatile and is expected to remain volatile in the near future,” Athawale said.
Stock picks for the short term
Athawale recommends the following three stocks to buy for the next 1-2 weeks. Take a look:
ICICI Bank | Previous close: ₹1,365.40 | Target price: ₹1,460 | Stop loss: ₹1,320
Athawale highlighted that after a short-term price correction, shares have reversed from their multiple support zones.
The bullish momentum near the support zone suggests the downside is limited. The current stock rebound is expected to continue, with further upside from current levels, offering a favourable risk-to-reward.
“As long as the stock is trading above ₹1,320, the bullish texture is likely to continue. Above which, the stock could move up to ₹1,460 levels,” said Athawale.
Bharti Airtel | Previous close: ₹1,905.90 | Target price: ₹2,040 | Stop loss: ₹1,840
Athawale highlighted that shares had been in a daily downtrend. Therefore, it is currently oversold and available near its demand area.
The texture of the chart formation and the technical indicator RSI indicate that the stock is very likely to rebound and form a new leg of the up move from its demand zone.
“For the next few trading sessions, ₹1,840 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹2,040,” said Athawale.
Oil India (OIL) | Previous close: ₹492.10 | Target price: ₹525 | Stop loss: ₹474
Athawale highlighted that shares have shown a robust rally from lower levels over the past few weeks.
Additionally, it is trading in an ascending triangle on the daily scale.
The overall formation indicates a likely breakout for a new leg of the up move from the current levels.
“For positional traders, ₹474 would be the decisive level. Trading above the same uptrend formation will continue till ₹525. However, if it closes below ₹474, traders may prefer to exit from trading long positions,” said Athawale.
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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.