Stocks to buy for short term: Stock market benchmarks, the Sensex and the Nifty 50, ended higher on Wednesday, 29 April, on value buying despite elevated crude prices and the rupee’s weakness amid stalled US-Iran peace talks.
The closed at 77,496, rising 609 points, or 0.79%. The NSE barometer gained 182 points, or 0.76%, to end at 24,177.65.
According to Amol Athawale, VP – Technical Research, Kotak Securities, the short-term outlook of the market remains positive. However, the Nifty 50 needs to close above 24,215 for a fresh uptrend.
“We are of the view that the short-term trend is still in a positive zone, but a fresh uptrend rally is possible only after the index crosses 24,215 or the 50-day SMA (simple moving average). Once this level is breached, the market could retest the level of 24,315. Further upside may also continue, potentially pushing the index to the 24,450-24,500 range,” said Athawale.
“On the downside, if the index slips below 24,100, market sentiment could turn negative. Below this level, the index may decline to the 23,900-23,850 range,” Athawale said.
Stock picks for the short term
Amol Athawale recommends the following three stocks to buy for the next 1-2 weeks:
Lodha Developers | Previous close: ₹912.70 | Target price: ₹980 | Stop loss: ₹880
As per Athawale, ’ shares are gaining traction for a further upmove after a remarkable rally and a breather over the last few sessions.
“The breakout from the consolidation structure of the chart formation indicates a bullish continuation pattern. Therefore, upward momentum in the stock is likely to persist in the near term,” said Athawale.
“As long as the stock is trading above ₹880, the bullish texture is likely to continue. Above which, the stock could move up to ₹980,” Athawale said.
TVS Motor Company | Previous close: ₹3,553.90 | Target price: ₹3,660 | Stop loss: ₹3,490
Athawale highlighted that shares, after their downward trend, are in the accumulation zone where they are trading in a range-bound mode on the daily scale.
However, the recent bullish activity in the stock is indicating good strength.
“The stock is expected to break out of the range and witness the bullish momentum from the current levels with a favourable risk and reward perspective,” said Athawale.
“For the next few trading sessions, ₹3,490 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹3,660,” said Athawale.
ICICI Prudential Life Insurance Company | Previous close: ₹524.35 | Target price: ₹560 | Stop loss: ₹505
Athawale pointed out that after a short-term correction in shares from the recent highs, the downward momentum had stopped, and it consolidated for a few sessions.
On daily charts, the stock has formed a rounding bottom chart formation and reversed its trend from its important demand zone.
The structure suggests a revival of the uptrend from the current levels in the near future.
“For the traders, ₹505 would be the key support level to watch out. Above which the up move structure could continue towards ₹560,” 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.