Stocks to buy for short term: Jigar Patel of Anand Rathi recommends 3 technical picks for 2-3 weeks; do you own any?

Stocks to buy for short term: Indian stock market benchmark Nifty 50 ended with a healthy gain of over 4 per cent last week, logging the largest weekly rise in more than four years, with shares of SBI Life Insurance, Shriram Finance and HDFC Life Insurance jumping 9-11 per cent.

Comfortable valuations, signs of foreign portfolio investors (FPIs) returning to the Indian stock market, improving macro indicators, and expectations of further rate cuts by the RBI and the US Federal Reserve were the key drivers behind the market’s largest weekly gains since February 2021.

US President Donald Trump’s tariff policies, the evolving situation in the Middle East, and the upcoming Q4 numbers will dictate the market’s mood in the near future.

Stock picks for short term

As the market is expected to remain volatile in the near term, experts recommend caution in stock selection.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends buying shares of Nykaa, BHEL and Escorts for the next two to three weeks.

FSN E-Commerce Ventures (Nykaa) | Previous close: ₹172.52 | Target price: ₹190 | Stop loss: ₹164 | Upside potential: 10%

Nykaa stock recently consolidated in the ₹163-168 zone, aligning with the R3 camarilla monthly pivot, indicating strong bullish momentum. Additionally, a bullish divergence and a falling trendline breakout in the price action are evident, confirmed by the RSI, which further supports the bullish outlook.

“Considering these factors, we recommend initiating long positions in the ₹170-173 zone, with an upside target of ₹190. A stop loss should be placed below ₹164 on a daily closing basis to manage risk,” said Patel.

“This combination of technical signals reinforces the likelihood of an upward move, making it an attractive opportunity for traders,” Patel said.

Bharat Heavy Electricals (BHEL) | Previous close: ₹211.95 | Target price: ₹233 | Stop loss: ₹201 | Upside potential: 10%

BHEL recently broke above the neckline of an inverse head and shoulders pattern, accompanied by an RSI bullish divergence, signaling a strong upward momentum.

Prior to the breakout, RSI traded in a narrow range of 35-50, indicating potential for an explosive move in the coming sessions. These technical factors strengthen the bullish outlook for the stock.

“We recommend initiating long positions in the ₹208-212 zone, with an upside target of ₹233. To manage risk, a stop loss should be placed near ₹201 on a daily closing basis. This setup suggests a favourable risk-to-reward opportunity for traders,” said Patel.

Escorts Kubota | Previous close: ₹3,228.30 | Target price: ₹3,535 | Stop loss: ₹3,080 | Upside potential: 10%

Escorts recently broke above the neckline of an inverse head-and-shoulders pattern, accompanied by a bullish RSI divergence, signalling strong upward momentum.

The neckline aligns with R3 camarilla resistance, which has been taken out by one clean green candle, thus affirming our bullish view on the counter.

“We advise to go long in the counter in the zone of ₹3,200-3,230 for an upside target of ₹3,535, and stop loss should be placed below ₹3,080 on a daily close basis,” said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.