Stocks to buy for short term: Jigar Patel of Anand Rathi suggests Tata Steel, SAIL, Tanla; here’s why

Stocks to buy for short term: Indian stock market benchmark Nifty 50 has been down for the third consecutive session. On the monthly scale, however, the index is up with a nominal gain of about 0.20 per cent after four consecutive months of losses since October.

Nifty 50 ended 43 points, or 0.18 per cent, lower at 23,559.95 on Friday, February 7, after the Reserve Bank of India (RBI) cut the repo rate by 25 bps after almost five years.

Weak corporate earnings, global uncertainty and foreign capital outflow have been keeping the market down. Investors’ focus now will be on the upcoming macroeconomic data, including the Index of Industrial Production (IIP) and Consumer Price Index (CPI) inflation, this week.

At this juncture, experts recommend betting on quality stocks. Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends buying Tata Steel, SAIL and Tanla shares for the next two to three weeks. Here’s what the expert says:

Shares to buy

Tata Steel | Previous close: ₹138.31 | Buying range: ₹135-138 | Target price: ₹150 | Stop loss: ₹130

Tata Steel has found strong support at the 200-period EMA (exponential moving average) on the weekly chart, reinforcing a potential reversal.

This support coincides with multiple technical factors, making it a high-probability zone for a rebound. Firstly, the price is retesting its previous breakout zone, a key level where demand could emerge.

Additionally, it aligns with the S3 yearly Camarilla support, which often acts as a strong floor for price action.

The Bullish Bat reversal zone further indicates a potential bounce based on harmonic analysis. Moreover, the stock has retraced 50 per cent of its entire upmove from June 2022 to June 2024, a classic Fibonacci retracement level where reversals commonly occur.

“We recommend going long in the ₹135-138 zone, with a target of ₹150 and a stop-loss at ₹130 on a daily closing basis,’ said Patel.

Steel Authority of India (SAIL) | Previous close: ₹110.32 | Buying range: ₹108-110 | Target price: ₹121 | Stop loss: ₹104

SAIL has undergone a significant correction, retracing 50 per cent of its upmove from June 2022 to May 2024. Since May 2024, the stock has been forming a lower lows and lower highs structure on the daily chart, leading to a sharp 75-point correction, equivalent to a 43 per cent decline.

However, a double-bottom formation has recently emerged near the 50 per cent retracement level, which also aligns with a previous breakout zone, adding strength to this support.

“This confluence of factors makes SAIL an attractive buying opportunity. Given the technical setup, one can consider buying in the ₹108-110 zone, aiming for an upside target of ₹121, while keeping a stop-loss below ₹104 on a daily closing basis,” said Patel.

Tanla Platforms | Previous close: ₹558.65 | Buying range: ₹540-560 | Target price: ₹675 | Stop loss: ₹490

Tanla has recently completed a two-year-old Bullish Bat pattern, which began in March 2023 and concluded in January 2025.

Since the pattern developed over an extended period, we anticipate a sharp reversal in the stock.

Additionally, the S2 and S3 yearly Camarilla supports align with the reversal zone, further strengthening the bullish case.

This confluence of technical factors makes the stock an attractive buy.

“One can go long in the ₹540-560 range, targeting an upside of ₹675, while maintaining a stop-loss below ₹490 on a daily closing basis. Given the long-duration pattern and strong support levels, the setup presents a high-probability trade with favourable risk-reward dynamics,” Patel said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.