Stocks to buy: The Indian stock market extended losses for the third consecutive session on Wednesday, 9 September, as rising oil prices due to escalating US-Iran tensions continued to weigh on sentiment. In three sessions, the crashed 2.3%, while the Nifty 50 shed 2%.
On Thursday, 10 September, the domestic market remained in the consolidation mode as crude oil prices traded near $101 per barrel, raising concerns over its impact on the Indian economy and corporate profitability.
The Nifty is now near 23,400. According to Amol Athawale, VP – Technical Research at Kotak Securities, on both daily and intraday charts, the market continues to maintain a lower high-lower low formation, while on daily charts, it has formed a bearish candle, indicating further weakness from the current levels.
“For day traders, 23,550 would remain immediate resistance. As long as the index trades below it, weak sentiment may persist. On the downside, the index could decline to 23,300-23,200. On the flip side, a sustained move above 23,550 could extend the bounce towards 23,650-23,700,” said Athawale.
Stock picks for the short term
Amol Athawale recommends buying the following three stocks for the next 1-2 weeks:
Swiggy | Previous close: ₹282.75 | Target price: ₹303 | Stop loss: ₹272
Athawale underscored following a sharp upward rally, 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 ₹272, which acts as immediate support. If the stock holds above this level, the positive trend structure remains intact. A decisive move beyond the consolidation range may trigger further upside, with the stock likely to head toward ₹303 in the coming sessions,” said Athawale.
Cummins India | Previous close: ₹5,170.50 | Target price: ₹5,540 | Stop loss: ₹4,990
Athawale said after declining from the higher levels, rebounded from its support zone and witnessed a sharp recovery from the lower levels.
Additionally, on the daily charts, the stock has given a breakout from its sloping channel formation.
“The up move in the stock suggest a new leg of bullish trend from the current levels. For the next few trading session ₹4,990 could be the trend decider level for the bulls, if it sustains above the same we can expect further uptrend towards ₹5,540,” said Athawale.
Jindal Steel | Previous close: ₹1,146.50 | Target price: ₹1,230 | Stop loss: ₹1,105
Athawale pointed out that is having a breather from last many sessions after a remarkable up move.
The consolidation structure suggests bullish continuation chart formation. Moreover, the stock comfortably closed above its short-term moving average. Therefore, it is likely to resume its uptrend from the current levels in the coming horizon.
“For positional traders, ₹1,105 would be the decisive level. Trading above the same reversal formation will continue till ₹1,230. However, if it closes below ₹1,105, traders may prefer to exit out from trading long positions,” said Athawale.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. 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.