Stocks to buy for short term: Falling for the fifth consecutive session, frontline index Nifty 50 ended with a solid loss of 243 points, or 1.06 per cent, at 22,553.35 on Monday, February 25. On a monthly scale, the index is now down over 4 per cent and looks set to extend the losing streak to the fifth consecutive session.
According to Mandar Bhojane, an equity research analyst at Choice Broking, the Nifty 50 trades near the lower support of a falling wedge pattern on the daily chart, forming a neutral candlestick.
Bhojane believes a decisive close below 22,550 could lead to further downside toward 22,400 and 22,200 in the short term. Conversely, 22,800 is acting as a strong resistance, and fresh buying may only emerge if the index sustains above this level.
Bhojane said the trend remains weak, with selling pressure dominating price action.
“On the weekly chart, the 100-EMA near 22,050 is a key long-term support level. As long as this holds, a sharp correction may be avoided. However, the broader trend remains sideways to bearish. Technically, the RSI is currently at 30 and trending downward, indicating weak momentum, while the Stochastic RSI at 0 suggests an oversold condition. These factors indicate a potential bullish reversal, but confirmation is needed through price action and volume before expecting a meaningful recovery,” said Bhojane.
While the market sentiment remains weak, experts find opportunities across segments. They suggest picking stocks with favourable technical indicators for the short term. Vishnu Kant Upadhyay of Master Capital Services and Hardik Matalia of Choice Broking recommend buying the below six stocks for the next 2-3 weeks. Take a look:
Vishnu Kant Upadhyay, AVP – Research & Advisory, Master Capital Services
Shriram Finance has witnessed a decisive breakout above a key descending trendline, marking the end of its corrective phase and signalling a strong bullish resurgence.
The stock has reclaimed both the 21-day EMA and the 200-day EMA with RSI above 50-mark, reinforcing its upward momentum.
The moving averages are converging, hinting at a potential trend reversal, while the surge in volume accompanying the breakout confirms strong buying interest.
“The stock’s ability to hold above these crucial levels suggests further upside potential, with the next resistance zone around ₹625-630. On the lower side, ₹554 level will continue to act as an immediate support,” said Upadhyay.
Hindalco has seen a strong rebound from recent lows, supported by bullish technical indicators. The stock has reclaimed its 21-day EMA, signalling renewed upward momentum while trading comfortably above the 200-day EMA, reinforcing long-term strength.
A surge in trading volumes suggests strong buying interest. The RSI has crossed the 70 mark, reflecting robust bullish momentum, and the MACD has given a positive crossover, further supporting the uptrend.
The stock has also respected its long-term rising trendline, indicating sustained strength in the broader structure.
“Prices appear poised to extend their rally in the coming sessions with potential gain towards ₹703 and then ₹710,” Upadhyay said.
Global Health (Medanta) has witnessed a strong breakout from a consolidation phase, signalling renewed bullish momentum.
The stock has surged past the upper trendline of a rising channel, supported by increasing volumes, indicating strong buying interest. The 21-day EMA has crossed above the 200-day EMA, reinforcing the bullish outlook. RSI is trending near 66, suggesting sustained strength without immediate overbought conditions.
The MACD has given a bullish crossover, further confirming the positive momentum.
“With the stock trading comfortably above key moving averages and a decisive breakout in place, further upside potential for ₹1,305, 1,310 remains intact. Any dips could be seen as buying opportunities,” Upadhyay said.
Gujarat Fluorochemicals is consolidating near a support zone, forming an inverted head and shoulder pattern on the daily chart, indicating a potential bullish breakout.
The stock is witnessing consistent trading volumes, adding strength to the setup. RSI at 51.41 is trending upwards, supporting positive momentum. It has rebounded from lower levels, surpassing its short-term (20-day) EMA and is now testing its medium-term (50-day) and long-term (200-day) EMAs.
According to Matalia, a breakout above the pattern could trigger an upward move toward ₹4,100-4,150.
“Given the technical structure, buying at the current level of ₹3,754.35 appears promising, with a stop-loss set at ₹3,570 to manage risk. A successful breakout may further accelerate bullish momentum, making it an attractive trade setup,” said Matalia.
Triveni Engineering & Industries | Previous close: ₹387.80 | Target price: ₹420, ₹435 | Stop loss: ₹365 | Upside potential: 12%
Triveni Engineering is consolidating near lower levels after a sharp 33 per cent decline from its recent highs, forming a double-bottom pattern on the daily chart, signalling a potential trend reversal.
RSI at 51.83 is trending upwards, indicating strengthening momentum. The stock has reclaimed its short-term (20-day) EMA and is showing signs of breaking above its medium-term (50-day) and long-term (200-day) EMAs, further supporting a bullish outlook.
Matalia believes a breakout from this consolidation range could trigger an upside toward ₹420-435.
“Given the technical setup, buying at the current price of ₹387.80 appears favourable, with a stop loss set at ₹365 to manage risk. If the breakout materializes, the stock could witness further upward momentum, making it a compelling trade opportunity,” said Matalia.
CG Power shows signs of a potential reversal after a sharp 36 per cent decline from its recent peak, forming a strong bullish candle on the daily chart.
A slight increase in trading volumes supports this upward movement. RSI at 47.98 is trending upwards, indicating strengthening momentum.
The stock has successfully moved above its short-term (20-day) EMA and holds the potential to test its medium-term (50-day) and long-term (200-day) EMAs.
Matalia believes a sustained move above these levels could drive further upside toward the ₹665-680 range.
“Given the current setup, buying at ₹602.50 appears favourable, with a stop-loss set at ₹570 to manage risk. If momentum continues, the stock could see further bullish traction in the near term,” Matalia 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.
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