Stocks to buy for short term: The Nifty 50 kicked off the week on a positive note amid buying in index heavyweights like Reliance Industries and HDFC Bank.
The index closed 0.83% or 211 points higher at 25,683 on Monday, February 16, while its 30-pack counterpart, Sensex, jumped 650 points or 0.79% to 83,277.
Last week’s price action has resulted in a bearish island pattern on the daily chart, which is typically a negative signal. However, Axis Securities believes that a decisive close above 25,800 would invalidate this pattern and open the path towards 26,000–26,350.
On the downside, it sees 25,500–25,450 as a critical support zone, aligning with the 20-day SMA, placed at 25,474, and the 50% Fibonacci retracement of the Feb’26 rally (25,455). A break below this level could accelerate the decline towards 25,250–25,000, it cautioned.
As the index outlook remains volatile, the brokerage has identified opportunities for investors in specific stocks that can offer up to 20% return in the near term.
Stocks to buy in short term
Among stocks to buy, Axis Securities recommends Kirloskar Oil Engines, Blue Star and Astral. The stocks are expected to reach their targets in 3-4 weeks. Here is the rationale:
1. Kirloskar Oil Engines Buy range: ₹1350-1323 | Stop loss: ₹1230 | Upside: 16-20%
Axis Securities said that Kirloskar Oil Engines remains in a strong uptrend, consistently forming higher highs and higher lows while holding above its upward-sloping trendline.
The stock recently broke out of the medium-term resistance zone around 1330, supported by a strong bullish candle. Since this breakout was accompanied by a surge in volumes, it indicates increased participation from markets.
Momentum indicators remain firmly bullish, with the weekly RSI trending above its reference line and sustaining above its upward-sloping trendline, reinforcing the positive outlook and underlying strength, said the brokerage.
It sees the stock heading towards the ₹155-1600 levels in 3-4 weeks.
2. Blue Star Buy range: ₹1965-1926 | Stop loss: ₹1880 | Upside: 7-9%
Brokerage Axis Securities said that Blue Star has broken decisively above the symmetrical triangle pattern formed since January 25, clearing the 1,910 level with a strong bullish candle and confirming continuation of the medium-term uptrend.
The volumes showed renewed participation and conviction among market participants. The weekly RSI has further validated the move as it decisively broke above its downward-sloping trendline and crossed the reference line, generating a clear buy signal.
The above analysis indicates an upside towards 2,076-2,120 levels, opined the brokerage.
3. Astral Buy range: ₹1580-1548 | Stop loss: ₹1460 | Upside: 13-15%
Axis Securities said that Astral found support near the ₹1200 zone, marking a confluence of the 61.8% Fibonacci retracement of the Mar’20–Jul’24 rally (placed at 1,196) and a key horizontal support formed in Jun’22.
Astral stock consolidated at this base, forming an ascending triangle pattern, and has now delivered a decisive breakout with a strong bullish candle, signaling a potential price reversal, said the brokerage.
A close above the weekly upper Bollinger Band strengthened conviction in the stock. The momentum indicators like RSI also reinforce the bullish outlook as it decisively broke above horizontal resistance near 60.
The above analysis indicates an upside towards 1,772-1,800 levels, said Axis Securities.
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.
