Stocks to buy for the short term: The domestic market ended with modest gains on Wednesday, February 26, on profit booking at higher levels.
The Sensex ended at 82,276.07, up 50 points, or 0.06%, while the Nifty 50 settled 58 points, or 0.23%, higher at 25,482.50.
According to Amol Athawale, VP – Technical Research at Kotak Securities, the 20-day SMA (simple moving average) or 25,600 may act as an immediate resistance for day traders.
As long as the Nifty 50 trades below this level, the weak sentiment is likely to continue on the downside, with a potential slip towards the 200-day SMA or 25,350-25,300. If the market moves above the 20-day SMA or 25,600, the pullback could extend towards 25,750-25,800, said Athawale.
Stock picks for the short term
Athawale recommends the following three stocks to buy for the next 1-2 weeks. Take a look
Mahindra & Mahindra | Previous close: ₹3,491.30 | Target price: ₹3,720 | Stop loss: ₹3,360
According to Athawale, Mahindra & Mahindra share price has rebounded from its important retracement zone and witnessed a robust recovery after declining from the higher levels.
Additionally, on the daily charts, the stock has given a breakout from its sloping trendline.
“The up moves in the stock suggest a new leg of the bullish trend from the current levels. For the next few trading sessions, ₹3,360 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹3,720,” said Athawale.
DCB Bank | Previous close: ₹191.28 | Target price: ₹205 | Stop loss: ₹185
Athawale pointed out that DCB Bank is having a breather from the last few sessions after the remarkable up move.
The consolidation structure suggests bullish continuation chart formation. Moreover, the stock closed comfortably above its short-term moving average. Therefore, the stock is likely to resume its uptrend from the current levels in the coming horizon.
“As long as the stock is trading above ₹185, the bullish texture is likely to continue. Above which, the stock could move up to ₹205,” said Athawale.
Fortis Healthcare | Previous close: ₹930.75 | Target price: ₹990 | Stop loss: ₹900
According to Athawale, on the daily chart, Fortis Healthcare’s share price has formed an inverse head and shoulder chart pattern, and it is trading near the neckline resistance zone.
The rising volume activity and structure of the stock are indicating a fresh leg of upward momentum from current levels in the coming horizon.
“For positional traders ₹900 would be the decisive level. Trading above the same uptrend formation will continue till ₹990. However, if it closes below ₹900, traders may prefer to exit from trading long positions,” 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.
