Stocks to buy for short term: TCS, Tata Motors, Hindalco among 8 technical picks expected to gain 7-12%, say experts

Stocks to buy for the short term: The Indian stock market has been under strong pressure lately due to heavy foreign capital outflow, geopolitical uncertainty, stretched valuation amid weak quarterly earnings, and signs of economic slowdown in the domestic economy.

The benchmark index Nifty 50 is down nearly 13 per cent from its record high of 26,277.35, reached on September 27 last year. The index has been in the red since October 2024.

After a long time, foreign institutional investors (FIIs) bought Indian equities worth ₹4,786.56 crore on February 18 in the cash segment. Since October, FIIs have offloaded Indian equities over ₹2.9 lakh crore.

On February 18, the Nifty 50 closed 14 points, or 0.06 per cent, lower at 22,945.30.

Experts expect the index to witness selling on the rise as long as it remains below the key level of 23,150.

“In the short term, Nifty might remain a ‘sell on rise’ as long as it stays below 23,150. Support is placed at 22,800, and a fall below this level might trigger further correction. Immediate resistance is placed at 23,000,” said Rupak De, Senior Technical Analyst at LKP Securities.

At the current juncture, experts recommend picking stocks with good fundamentals and strong technical indicators.

Several experts suggested buying the following eight stocks for the next 2-3 weeks, anticipating an upside of 7-12 per cent. Take a look:

Shares to buy

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers

Tata Motors | Previous close: ₹682.40 | Target price: ₹755 | Stop loss: ₹650 | Upside potential: 11%

Tata Motors saw a sharp decline of about 42 per cent from its peak of ₹1,179. It recently formed a Bullish Crab pattern around the ₹665-680 range, aligning with a strong support zone and the S1 Monthly pivot support, highlighting its importance.

Additionally, a bullish RSI divergence on the daily chart indicates positive momentum.

“Given these signals, a long position is recommended above ₹685 on a daily close, targeting ₹755. A stop loss should be set below ₹650 on a daily close to managing risk,” said Patel.

“This strategy leverages the confluence of technical patterns and support levels, suggesting a potential reversal from the current support zone,” Patel said.

Hindalco Industries | Previous close: ₹611.45 | Target price: ₹675 | Stop loss: ₹580 | Upside potential: 10%

Hindalco has been consolidating between ₹588-610 for the past seven sessions. In the previous session, it attempted a breakout but failed.

Notably, Hindalco has completed its 5-wave Elliott Wave structure, suggesting the start of an ABC corrective move.

This indicates a potential upward retracement. Additionally, the RSI has broken a long-standing bear trendline, signalling early bullish momentum.

“Given these technical signals, a long position is recommended above ₹613 on a daily close, with a target of ₹675. To manage risk, a stop-loss should be placed below ₹580 on a daily close. This strategy combines Elliott Wave analysis with RSI confirmation, indicating a possible bullish move from the current consolidation phase,” said Patel.

Bharat Petroleum Corporation (BPCL) | Previous close: ₹252.75 | Target price: ₹275 | Stop loss: ₹234 | Upside potential: 9%

BPCL witnessed a sharp decline of about 33 per cent from its peak of ₹376. It recently completed a Bullish Shark pattern around the ₹240-242 level, which coincides with a strong support zone.

This area aligns with the S1 Monthly and S1 Quarterly pivot supports, reinforcing its significance.

Additionally, the price is near the 50 per cent retracement of the uptrend from October 2022 to September 2024, suggesting a potential reversal.

The confluence of technical indicators signals a possible rebound.

“A long position is recommended in the ₹245-250 range, targeting ₹275. This strategy anticipates a recovery from the key support zone. To manage risk, a stop loss at ₹234 on a closing basis is suggested. This setup presents an attractive risk-reward ratio for potential upside movement,” said Patel.

Vishnu Kant Upadhyay, AVP – Research & Advisory, Master Capital Services

Tata Consultancy Services (TCS) | Previous close: ₹3,873.20 | Target price: ₹4,300 | Stop loss: ₹3,740 | Upside potential: 11%

TCS is currently testing the lower boundary of a falling channel while holding above the 100-week EMA and the long-term ascending trendline support.

This confluence suggests a potential rebound from current levels. The RSI at 40 is near oversold territory, indicating a possible reversal if buying emerges.

Additionally, the MACD histogram shows signs of bottoming out, suggesting weakening bearish momentum.

“Prices have very limited downfall from the present juncture, with favourable risk-reward, we expect prices to take U-turn from the present juncture with potential upside towards ₹4,300. On the lower side, ₹3,740 will act as an immediate support, a decisive fall below this level will shift the sentiments to bearish,” said Upadhyay.

Nestle India | Previous close: ₹2,222.40 | Target price: ₹2,386 | Stop loss: ₹2,060 | Upside potential: 7%

Nestle India has tested a crucial support zone near ₹2,147-2,150, which aligns with previous resistance-turned-support and the 200-week EMA.

The price action suggests accumulation at these levels, indicating a potential reversal. The RSI is stabilizing around 41, hinting at a possible recovery from oversold conditions.

Additionally, the MACD histogram is showing signs of contraction, signalling a weakened bearish momentum.

“Prices are expected to witness a fresh round of buying from the present juncture, leading to a rebound towards ₹2,386 in the near term. As long as the stock holds above the ₹2,060 support, the broader uptrend remains intact, making this a strong risk-reward setup for long-term investors,” said Upadhyay.

Hindalco Industries | Previous close: ₹611.45 | Target price: ₹667 | Stop loss: ₹558 | Upside potential: 9%

Hindalco Industries is currently trading near a strong ascending trendline support, which has historically acted as a reliable demand zone. The 100-week EMA is providing additional support, reinforcing the stock’s bullish structure.

The RSI at 44 is recovering from oversold territory, indicating a potential reversal. Meanwhile, the MACD histogram is showing signs of contraction, suggesting weakening bearish momentum.

“Prices are in ‘buy the dip’ mode and looking to pave the way for an upside towards ₹667. With the validation of ₹558 support zone, the broader uptrend remains intact,” Upadhyay said.

Mandar Bhojane, Equity Research Analyst, Choice Broking

Chambal Fertilizers and Chemicals | Previous close: ₹537 | Target price: ₹600 | Stop loss: ₹514 | Upside potential: 12%

Chambal Fertilizers stock has rebounded from a key support level while forming a bullish engulfing candlestick pattern.

The stock is on the verge of a range breakout, established in late June, which could drive further bullish momentum.

This breakout scenario is supported by increasing trading volumes, indicating strong buying interest.

The RSI stands at 60 and is trending upward, signalling a healthy uptrend with room for further growth. Additionally, it is trading above its 20-day, 50-day, and 200-day EMAs, reinforcing positive momentum.

“A sustained move above ₹562 could trigger an uptrend toward ₹600. Traders may consider entering at ₹542.80, with a stop loss at ₹514, while exercising caution against short-term volatility and adhering to strict risk management strategies,” said Bhojane.

MOIL | Previous close: ₹302.35 | Target price: ₹325 | Stop loss: ₹295 | Upside potential: 7.5%

MOIL has rebounded from a key support zone, potentially forming a triple bottom, which signals a strong bullish reversal.

“A sustained move above the critical resistance at ₹310 could trigger an uptrend toward ₹325, supported by increasing trading volumes that indicate strong buying interest,” said Bhojane.

The RSI stands at 44.35 and is trending upward, while MOIL is approaching its 20-day EMA. Closing above this level would further reinforce the bullish outlook.

“Traders may consider entering at ₹304.10, with a stop-loss at ₹295 and an upside target of ₹325. However, caution is advised due to potential short-term volatility, making strict risk management essential for effective trade execution,” Bhojane said.

Kaveri Seed Company | Previous close: ₹976.10 | Target price: ₹1,041 | Stop loss: ₹939 | Upside potential: 7%

Kaveri Seed Company has rebounded from a key support zone while forming a Morning Star candlestick pattern.

The stock is on the verge of breaking out of its consolidation range, with a move above ₹995 potentially triggering an uptrend toward ₹1,041. Increased trading volumes indicate strong buying interest, reinforcing the bullish outlook.

The RSI stands at 57.20 and is trending upward, while KSCL trades above its 20-day, 50-day, and 200-day EMAs, further supporting the positive momentum.

“Traders may consider entering at ₹972.85, targeting ₹1,041, with a stop-loss at ₹939. However, caution is advised due to potential short-term volatility. Adhering to proper risk management practices remains essential for successful execution,” said Bhojane.

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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.