Stocks to buy for short term: The Indian stock market witnessed heightened volatility last week, with the benchmark Nifty 50 falling by almost a per cent for the week ended November 7, amid weak global cues, lack of fresh triggers and persisting uncertainty over a potential India-US trade deal.
This week, news on India-US trade talks, Q2 earnings, the trend of FIIs, and domestic inflation prints will be in focus. On the technical front, experts believe that the 25,600 level will determine whether the uptrend resumes or not.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the Nifty 50 has now retraced nearly 50 per cent of its prior up-move (24,600-26,100) and found support precisely at the extension of the cup-and-handle breakout zone.
Patel believes going forward, a move above 25,600 would signal the resumption of the uptrend, opening the door for a gradual rise towards 25,800–26,000 and eventually new highs. Conversely, a breach of 25,300 could extend weakness towards 25,100–25,000, which remains a crucial rising-trendline support area.
“Traders may consider accumulating index ETFssuch as NIFTY BEES, NIFTY 500 ETF, and NIFTY SMLCAP 250 ETF at current levels,” said Patel.
Meanwhile, the Bank Nifty slipped to the 57,000 zone but ended flat for the week. On the daily chart, the formation of a bullish engulfing pattern hints at a potential reversal or continuation of the larger uptrend.
“A close above 58,000 could trigger fresh upside momentum towards 60,000, while a breakdown below 57,000 may invite short-term pressure. Overall, the setup remains bullish with a positive bias as long as the 57,000 level holds firm,” said Patel.
Stock picks for the short term
Jigar Patel recommends buying shares of LIC, Hindustan Zinc , and Birlasoft for the next one to two weeks.
LIC India | Previous close: ₹924.15 | Buying range: ₹926–920 | Target price: ₹1,015 | Stop loss: ₹877
Patel pointed out that after a brief phase of consolidation, LIC India has registered a trendline and range breakout accompanied by a noticeable surge in trading volumes, indicating strong participation from buyers.
Moreover, the MACD has given a bullish crossover above the zero line, confirming the shift in momentum towards the positive side.
The combination of price breakout and momentum confirmation suggests the stock is poised for a fresh leg of upmove in the near term.
“Technically, as long as the breakout zone holds, the overall structure remains constructive, with scope for higher levels in the sessions ahead. Go long in the ₹926–920 zone for a target of ₹1,015, maintaining a stop-loss at ₹877 on a daily closing basis,” said Patel.
Hindustan Zinc | Previous close: ₹474.50 | Buying range: ₹475–470 | Target price: ₹520 | Stop loss: ₹449
Patel said Hindustan Zinc has corrected nearly 12.5 per cent from its recent peak, finding strong support near its 200 DEMA, a crucial long-term moving average that often acts as a trend decider.
The stock has formed a bullish engulfing pattern at this support zone, suggesting a potential reversal in momentum after the recent decline.
On the hourly chart, a bullish divergence is evident on the MACD indicator, indicating that downside momentum is weakening and buyers may be regaining control.
The convergence of these signals suggests a short-term trend reversal and potential upside in the coming sessions.
“Sustaining above the 470–475 zone could open the door for a rally towards the ₹520 level, which coincides with near-term resistance. On the flip side, a decisive close below ₹449 would negate the bullish view and invite renewed weakness,” said Patel.
“We recommend going long in the ₹475–470 range, with a target of ₹520, keeping a stop loss of ₹449 on a daily closing basis,” Patel said.
Birlasoft | Previous close: ₹378.25 | Buying range: ₹380–370 | Target price: ₹450 | Stop loss: ₹335
As per Patel, on the weekly chart, Birlasoft has formed a bullish engulfing pattern accompanied by a sharp rise in volumes, signalling strong buying interest at lower levels.
The price has also registered a trendline breakout, confirming a shift in momentum after a prolonged period of consolidation.
Additionally, a bullish divergence on the MACD further supports the likelihood of a sustained upside move in the coming sessions.
“The confluence of these technical indicators points towards the resumption of an upward trend. We recommend going long in the range of ₹380–370 for a target of ₹450, while maintaining a stop loss at ₹335 on a daily closing basis,” said Patel.
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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.