Stocks to buy for short term: After clocking a healthy gain of 1.24% and ending at 24,331 on 6 May, the market benchmark Nifty 50 is expected to extend gains on Thursday, 7 May, amid positive global cues.
Markets in , South Korea, and Taiwan are at record highs on the prospect of a peace deal in the Middle East. Crude oil benchmark, Brent Crude, dropped by 8% to trade near the $102 per barrel.
According to Amol Athawale, VP – Technical Research, Kotak Securities, the uptrend formation in the is likely to continue in the near future.
“For day traders, 24,200 and 24,100 would be crucial support zones. As long as the market is trading above these levels, the uptrend wave is likely to continue. On the higher side, the rally could extend till 24,500–24,600. However, below 24,100, the uptrend would become vulnerable, and traders may prefer to exit their long positions,” said Athawale.
Stock picks for the short term
Amol Athawale recommends the following three stocks to buy for the next 1-2 weeks:
Cummins India | Previous close: ₹5,324.50 | Target price: ₹5,675 | Stop loss: ₹5,120
Athawale highlighted that on the weekly scale, share price is in a rising channel chart formation with higher high and higher low series pattern.
The stock witnessed a steady recovery from trend line support levels.
Additionally, the technical indicator RSI is also indicating a further uptrend from current levels, which could boost the bullish momentum in the near future.
“For positional traders, ₹5,120 would be the decisive level. Trading above the same uptrend formation will continue till ₹5,675. However, if it closes below ₹5,120, traders may prefer to exit from trading long positions,” said Athawale.
Rail Vikas Nigam (RVNL) | Previous close: ₹305.10 | Target price: ₹325 | Stop loss: ₹292
Athawale said after a sharp uptrend, shares witnessed a bit of selling pressure, but eventually their downward momentum paused, and they have found support.
Athawale added that on daily charts, the stock has formed a cup and handle kind of formation, and a fresh breakout from the resistance zone is very likely to occur in the coming trading sessions.
“As long as the stock is trading above ₹292, the bullish texture is likely to continue. Above which, the stock could move up to ₹325,” said Athawale.
Eternal | Previous close: ₹256.05 | Target price: ₹275 | Stop loss: ₹245
According to Athawale, share price is now consolidating within a symmetrical triangle pattern on the daily chart, indicating that bullish momentum could continue in the near term.
The presence of higher lows highlights sustained buying interest and underlying strength, suggesting a potential breakout ahead.
“For traders, the key level to monitor is ₹245, which acts as immediate support. If the stock holds above this level, the positive trend structure remains intact,” said Athawale.
“A decisive move beyond the consolidation range may trigger further upside, with the stock likely to head toward the ₹275 level in the coming sessions,” Athawale said.
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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.