Stocks to buy for the short term: The Indian stock market ended the holiday-truncated week nominally higher amid subdued trading activity due to year-end adjustments. The Nifty 50 spent most of the week moving within a tight range of 26,235-26,009, highlighting the lack of strong directional conviction among investors.
For the coming week, global cues, macro prints, the movement of the rupee, and FII activity will dictate market movement.
On the technical front, 26,300 remains a formidable resistance for the index.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, with the initial gap now largely neutralised, attention shifts to the 26,000 level, which has emerged as an important demand area.
“A sustained move below this threshold could result in a phase of extended consolidation or a decline towards the next support at 25,700. On the upside, only a decisive and sustained breakout above 26,300 is likely to revive bullish momentum and pave the way for a move towards 26,500,” said Patel.
“Until such clarity emerges, the index is expected to remain range-bound, favoring a measured and selective trading approach rather than aggressive index positioning,” Patel said.
Stock picks for the short term
Jigar Patel recommends buying the following three stocks for the next one to two weeks:
Engineers India | Previous close: 205.35 | Target price: 228 | Stop loss: 192
Patel highlighted that Engineers India shares formed a multiple bottom near the 195- 200 zone, highlighting strong buying interest and a solid base.
Recently, price action has regained the 200 DEMA, which is a positive structural development and signals a shift towards bullish momentum.
Additionally, the RSI on the daily timeframe has given a clear breakout, confirmed strength and improving sentiment. These technical factors together suggest a higher probability of an upward move in the near term.
“Based on this setup, traders may consider initiating long positions in the 206- 204 accumulation zone. The expected upside target is placed at 228, while a protective stop loss should be maintained at 192 to manage risk effectively and safeguard against unexpected downside,” said Patel.
Concor | Previous close: 520.30 | Target price: 575 | Stop loss: 495
Patel pointed out that Concor has shown a meaningful reversal from a long-term historical support zone that has been intact since October 2019, highlighting strong buying interest at lower levels.
On the daily timeframe, the stock has formed a bullish divergence near the 490- 500 support zone, where prices made lower lows while momentum indicators started improving.
This signals weakening selling pressure and a potential trend reversal. Adding strength to this view, the weekly RSI has confirmed a breakout and is currently placed near the 45 mark, suggesting a shift from bearish to neutral-positive momentum with room for further upside.
The alignment of long-term support, momentum divergence, and improving weekly structure enhances the probability of a sustained recovery.
“Based on this technical setup, traders may consider initiating long positions in the 525- 515 accumulation zone. The expected upside target is 575, while a strict stop loss should be maintained at 495 on a weekly closing basis to manage risk and protect capital,” said Patel.
Texmaco Rail & Engineering | Previous close: 140.09 | Target price: 156 | Stop loss: 130
Patel said strong momentum continues to be visible across railway stocks, reflecting sustained sectoral strength.
In this backdrop, Texmaco Rail has delivered a notable technical improvement by reclaiming its 200-period weekly EMA, as highlighted in the chart.
This development signals a revival in the medium- to long-term trend. Additionally, the RSI on the weekly timeframe has registered a decisive breakout above its downward trendline, indicating strengthening underlying momentum.
The bullish setup is further validated by a clear surge in volumes, suggesting renewed participation and accumulation at higher levels.
“Given these technical signals, we recommend a buy-on-dips approach in the 140- 138 zone, with a stop loss at 130 on a closing basis. On the upside, the stock has the potential to move towards 156 in the coming sessions, provided the broader market environment remains supportive,” 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.
