Stocks to buy for the short term: The Indian stock market clocked decent gains for the week ended Friday, February 6, amid Union Budget 2026, the India–US trade deal, global concerns surrounding AI-led disruption in technology stocks, and the RBI’s monetary policy outcome.
Benchmark Nifty 50 rose by 1.5% for the week, closing at 25,693.70.
“Despite intermittent profit booking and weakness in IT stocks due to global AI-driven sell-offs, the index recovered to close at 25,693.70, registering its strongest weekly performance in three months. Gains were primarily supported by FMCG, realty, metals, and other domestically oriented sectors,” Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, highlighted.
Patel underlined that the Nifty rebounded strongly from the 24,500 base but encountered stiff resistance near the 25,900–26,000 zone. The index has since entered a short-term consolidation phase, indicating temporary exhaustion following the sharp rally.
Patel said on the downside, 25,450 remains a key pivot level. A sustained break below this mark could lead to a corrective move towards 25,100, with the broader support zone placed between 24,800 and 24,500. As long as this demand band holds, the medium-term trend remains constructive.
On the upside, the 25,900–26,400 range represents a significant resistance cluster. A decisive and sustained breakout above 26,400 would be required to re-establish bullish momentum and confirm the next leg of the uptrend, said Patel.
Until such a move materialises, Patel believes the index is expected to trade within a defined range, with stock-specific opportunities likely to outperform the broader benchmark.
For Bank Nifty, Patel said a sustained breakout above 62,000 is necessary to confirm renewed upward momentum. Until then, consolidation with a neutral-to-positive bias is anticipated.
“Immediate support is positioned near 59,000, which aligns with a recent gap area and serves as a crucial short-term demand zone. As long as this level holds, the broader structure remains intact, though a cautious and selective approach is advisable,” said Patel.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next one to two weeks:
Gujarat Gas | Previous close: ₹425.45 | Buying zone: ₹426 ₹420 | Target price: ₹465 | Stop loss: ₹400
Patel highlighted that Gujarat Gas has delivered a strong technical breakout as the price closed above the William Alligator indicator, with all three lines (Jaw, Teeth, and Lips) aligning parallel — a classic indication of the beginning of a fresh uptrend.
This alignment typically signals trend expansion after a consolidation phase. Adding to the bullish setup, MACD has crossed above the zero line, reflecting strengthening momentum and a shift towards positive territory.
The DMI has also turned positive, indicating improving directional strength in favor of the bulls.
“Considering the confluence of these technical indicators, the stock appears poised for further upside. Traders may consider buying in the zone of ₹426- ₹420, with a stop loss placed at ₹400 and an upside target of ₹465,” said Patel.
IFCI | Previous close: ₹60.18 | Buying zone: ₹61 to ₹59 | Target price: ₹70 | Stop loss: ₹55
Patel said IFCI is showing encouraging signs on the technical charts. The stock has moved above the William Alligator indicator, and importantly, the three lines — Jaw, Teeth, and Lips — are running parallel, which generally indicates the emergence of a sustainable trending move after consolidation.
Momentum indicators are also supporting the bullish view. The MACD has crossed above the zero line, highlighting a shift towards positive momentum, while the DMI has turned positive, suggesting strengthening buying pressure and improving trend strength.
“With price structure and momentum indicators aligned, the setup favors further upside. Traders can look to accumulate the stock in the ₹61- ₹59 range, keeping a stop loss at ₹55, while aiming for a potential target of ₹70 in the near term,” said Patel.
Godrej Properties | Previous close: ₹1,699.80 | Buying zone: ₹1,700 to ₹1,600 | Target price: ₹1,950 | Stop loss: ₹1,500
According to Patel, Godrej Properties has undergone a sharp correction, falling from around ₹2,166 to a recent low near ₹1,475, which has pushed momentum indicators into deeply oversold territory.
The MACD has dropped to extreme historical levels, reflecting the intensity of the recent decline.
Historically, whenever MACD has generated a crossover — especially from such extreme zones — it has led to meaningful price moves.
In the current scenario, a bullish crossover is emerging from levels comparable to those seen at the beginning of 2025 and again in early February 2026, said Patel.
Such crosses from deeply oversold conditions often mark the beginning of a relief rally or trend reversal.
“Given this setup, traders may consider accumulating the stock in a staggered manner within the ₹1,700– ₹1,600 zone. A stop loss can be maintained at ₹1,500 on a closing basis, with an upside target of ₹1,950 in the near to medium term,” 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.
