Stocks to buy for the short term: SBI Cards and DLF are among 3 shares, Kotak Securities’ Amol Athawale suggests for the next 1-2 weeks.(Kotak Securities)AI Quick ReadStocks to buy for the short term: The Indian stock market benchmarks, the Sensex and the Nifty 50, ended with heavy losses on Wednesday, 22 April, on profit booking at elevated levels.
The Nifty 50 plunged 199 points, or 0.81%, to settle at 24,378.10 on Wednesday. Among sectors, the Nifty IT index dropped nearly 4%.
On Thursday, benchmark indices may remain under pressure due to renewed escalation of tension between the US and Iran, even though the ceasefire between them continues.
According to Amol Athawale, VP - Technical Research, Kotak Securities, as long as the market remains below 24,500, the weak sentiment is expected to persist. On the downside, it may fall to 24,300, and further weakness could continue, potentially pulling the index down to 24,200. On the upside, above 24,500, it could revisit the 24,600–24,675 range.
Amol Athawale recommends the following three stocks to buy for the next 1-2 weeks:
Athawale highlighted that after the declining trend, SBI Cards shares reversed from their important demand zone.
The stock has formed a rounding bottom chart pattern on the daily scale, and it is in a steady upward move.
The technical indicator, like RSI, is also indicating a further uptrend from current levels, which could boost the bullish momentum in the coming horizon.
"As long as the stock is trading above ₹660, the bullish texture is likely to continue. Above which, the stock could move up to ₹730," said Athawale.
Athawale highlighted that Pidilite Industries shares have given a breakout from an inverse head and shoulder chart pattern on the daily charts.
Therefore, sustaining above the breakout of the range indicates a new leg of the uptrend from current levels.
"For positional traders, ₹1,370 would be the decisive level. Trading above the same uptrend formation will continue till ₹1,510. However, if it closes below ₹1,370, traders may prefer to exit from trading long positions," said Athawale.
On the daily and weekly scale, DLF shares are in a rising channel chart formation with higher high and higher low series patterns.
The stock witnessed a steady recovery from the lower levels. Additionally, the technical indicator RSI is also indicating a further uptrend from current levels, indicating the bullish momentum will be sustained in the near future.
"For the next few trading sessions, ₹590 could be the trend decider level for the bulls. If it holds above the same, we can expect further uptrend towards ₹650," said Athawale.
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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.