Stocks to buy for the short term: The Indian stock market benchmarks- the Sensex and the Nifty 50- snapped their three-day losing streak on Thursday, supported by positive global cues amid signs of defusing the Greenland crisis and a potential India-US trade deal getting closer.
The Nifty 50 ended at 25,289.90, rising 0.53% on Thursday.
“Sentiment improved significantly amid reports of easing geopolitical tensions and a perceived reduction in near-term tariff risks following comments from the US President at Davos. Global markets rallied overnight, and this positive momentum spilled over into domestic equities, leading to short-covering and renewed buying interest across sectors,” Ajit Mishra, SVP of Research at Religare Broking, observed.
Mishra highlighted that the Nifty is hovering around its long-term moving average, the 200-day DEMA near the 25,150 level.
Mishra emphasized that sustaining above the 25,150 level will be crucial for any further recovery towards the 25,600 mark. If the index fails to sustain it, the downtrend may resume, with the next support in the 24,750–24,900 range.
Mishra suggests investors should focus on risk management and pick stocks with strong technical and fundamental at this juncture.
Stock picks for the short term
Bharat Electronics (BEL) | Last traded price (LTP): ₹417.30 | Buy | Target price: ₹445 | Stop loss: ₹401
Mishra said that within the defense sector, BEL has emerged as a relative outperformer, demonstrating strong price resilience by sustaining at elevated levels.
The stock has been in a prolonged consolidation phase for over a year, forming a trend-continuation structure that typically precedes the next leg of an uptrend.
The stock has developed multiple bullish structures within the broader consolidation range, strengthening the conviction of an impending breakout and the start of a new upward leg.
Recently, BEL formed a pivot near its key short-term moving average, supported by a bullish RSI crossover, signaling improving short-term momentum.
“Investors looking to align with budget-related opportunities may consider BEL, given its favorable technical setup,” said Mishra.
Godrej Consumer Products | LTP: ₹1,246 | Buy | Target price: ₹1,330 | Stop loss: ₹1,200
As per Mishra, Godrej Consumer Products witnessed a strong rally earlier and, after peaking near ₹1,540, underwent a healthy retracement towards its 200-week EMA, where fresh buying interest emerged.
The fact that the long-term EMA continues to slope upward reaffirms the broader bullish undertone.
Technically, the stock has broken above its declining trendline and is sustaining well above it. Following this breakout, it has entered a tight three-week consolidation, indicating potential for a resumption of upside momentum.
“The stock is trading above its key moving averages, and momentum indicators remain bullish, suggesting strength in the current setup. Given this price action, long positions may be considered in Godrej Consumer Products within the specified range,” said Mishra.
Jindal Steel | LTP: ₹1,076 | Buy | Target price: ₹1,170 | Stop loss: ₹1,030
Mishra underlined that Jindal Steel, after lagging the broader metal rally, is now showing signs of gearing up for an upside move.
The stock has formed a higher base and is approaching a key resistance zone, with a potential breakout likely to pave the way for fresh record highs.
Within the context of a broader uptrend, a decisive breakout would signal the start of a new leg higher.
“A supportive sectoral environment combined with a constructive chart structure offers traders an attractive opportunity to initiate fresh buying positions,” said Mishra.
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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.
