Stocks to buy for the short term: The domestic market seems to have missed a “Santa rally” this year, largely on persisting global uncertainty and the lack of fresh domestic triggers. The benchmark Nifty dropped 100 points, or 0.38%, to end at 25,942 on Monday, extending losses to the third consecutive session.
A Santa Claus rally is seen during the seven-day trading window, usually the last five trading days of December and the first two trading days of January.
On a monthly scale, the Nifty is down 1% in December (till 29th), looking set to snap its three-month winning streak. Year-to-date, however, the index had gained about 10%.
The market is expected to remain volatile ahead of the start of the Q3 earnings season. The focus is also on the global developments and hints at a potential India-US trade deal.
Experts say it is a stock-pickers market and investors should focus on stocks with favourable technical indicators for the short term.
Vishnu Kant Upadhyay of Master Capital Services and Hitesh Tailor of Choice Equity Broking recommend the following six stocks to buy for the next 1-2 weeks:
Expert: Vishnu Kant Upadhyay, AVP- Research & Advisory, Master Capital Services
Tata Consumer Products | Buy at ₹1,195 | Target prices: ₹1,285 and ₹1,310 | Stop loss: ₹1,130
Upadhyay highlighted that Tata Consumer is exhibiting a strong bullish technical setup on the daily chart.
Prices are firmly trading above all key exponential moving averages, highlighting sustained buying interest and a well-established uptrend.
The stock has also decisively broken out of its earlier falling trendline resistance, signalling a shift from consolidation to renewed upside momentum.
The structure continues to reflect higher highs and higher lows, reinforcing trend strength.
Momentum indicators remain supportive, with RSI holding in a bullish zone and MACD showing improving traction.
Bikaji Foods International | Buy at ₹758 | Target price: ₹816 | Stop loss: ₹717
According to Upadhyay, Bikaji Foods International share prices are displaying an improving bullish technical structure on the daily chart.
The stock has rebounded sharply from its 200-day EMA, highlighting strong long-term support and renewed buying interest at lower levels.
Prices are gradually forming a rounding bottom pattern, indicating a transition from a corrective phase to a potential trend reversal.
Additionally, the stock has registered a breakout above its horizontal resistance zone, confirming accumulation-driven strength.
Momentum indicators are supportive, with RSI moving into a bullish zone and MACD showing positive crossover signals.
Federal Bank | Buy at ₹263 | Target prices: ₹275 and ₹280 | Stop loss: ₹254
Upadhyay underscored that Federal Bank continues to witness a strong bullish trend on the daily chart.
Prices are firmly trading above key moving averages, reflecting sustained strength and positive market structure.
The stock has delivered a sharp upside breakout after a prolonged consolidation phase, supported by rising volumes, which confirms strong participation from buyers.
The formation of higher highs and higher lows clearly indicates trend continuation.
Momentum indicators remain constructive, with RSI holding in a bullish zone, while a rising ADX suggests strengthening trend intensity.
Expert: Hitesh Tailor, Technical Research Analyst at Choice Broking
Tata Communications | Buy at ₹1,800 | Target price: ₹1,960 | Stop loss: ₹1,725
According to Tailor, Tata Communications share price is showing signs of strength after taking firm support near its previous swing low, aligned with the 100-day EMA.
The stock continues to trade above its 100- and 200-day EMAs, indicating accumulation at this strong support zone. RSI stands at 47.42, suggesting a potential bounce from near-oversold levels.
“Short-term traders may consider buying around current levels, targeting ₹1,960, with a stop loss at ₹1,725 to manage downside risk effectively,” said Tailor.
BPCL | Buy at ₹374 | Target price: ₹405 | Stop loss: ₹355
Tailor highlighted that BPCL is showing strength by forming a clear higher high–higher low structure.
The stock recently found strong support at its previous higher high, aligned with the 50 EMA, indicating sustained buying interest.
It is currently consolidating in a sideways range and is close to a potential breakout near ₹374.
The stock continues to trade above its 20, 50, 100, and 200 EMAs, reflecting an overall bullish structure. RSI at 62.51 signals healthy momentum.
“Short-term traders may consider buying on a breakout above ₹374 with volume, targeting ₹405 and a stop loss at ₹355, maintaining disciplined risk management,” said Tailor.
Dr. Lal PathLabs | Buy at ₹1,428.20 | Target price: ₹1,520 | Stop loss: ₹1,380
Tailor said Dr. Lal PathLabs is trading within a demand zone and has taken strong support at these levels, indicating visible accumulation.
The stock has witnessed a breakout from a five-day sideways consolidation and is gradually moving higher. RSI at 44.73 reflects a rebound from oversold territory, suggesting improving momentum.
“On the downside, immediate support is placed near the previous swing low, where buying interest remains intact. Short-term traders may consider buying at current levels, targeting ₹1,520 with a stop loss at ₹1,380, following disciplined risk management,” said Tailor.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, 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.