Stocks to buy for the short term: The Indian stock market has been witnessing healthy buying over the last few days. The Nifty 50 hit an all-time high of 26,340. For the week ended 2 January, the index rose by 1.10%, extending gains to a second consecutive week.
The domestic market remained resilient in 2025 despite significant global and domestic headwinds, including US tariffs, the rupee’s fall against the dollar, weak earnings, stretched valuations, and massive foreign capital outflow.
Amid all these challenges, benchmark indices managed to deliver steady gains, with the Sensex advancing 9% and the Nifty 50 rising over 10%.
“This marked the tenth consecutive year of positive returns for Indian equities. Strong and consistent participation from domestic institutional investors and retail investors played a crucial role in offsetting net FII selling of over 1.44 lakh crore,” Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted.
“Although volatility remained elevated for much of the year, a sharp rebound in the final quarter enabled indices to recover from a prolonged consolidation phase and revisit higher levels,” Patel added.
From a near-term technical perspective, the Nifty opened the previous truncated week with a gap-up but struggled to sustain above the 26,300 resistance zone, leading to a gap fill and a mild corrective phase.
Patel highlighted that the 25,950–25,850 region acted as a critical gap-based support area, with overall downside risk capped as long as 25,700 held on a closing basis. The index respected this support band, staged a strong rebound, and has since registered a decisive breakout above 26,200.
“This price action confirms a bullish cup and handle formation, carrying a pattern projection of roughly 400 points and indicating potential upside towards the 26,500–26,600 zone, provided current levels are maintained,” said Patel.
“For the near term, 26,100 remains a key support for Nifty; a close below this level would weaken the bullish structure. Until a clear follow-through above resistance zones emerges, a selective, stock-specific approach within quality broader market names 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:
Varun Beverages (VBL) | Previous close: 493.80 | Buying range: 495 485 | Target price: 550 | Stop loss: 460
Patel highlighted that VBL has witnessed a decisive trendline and triangle breakout, indicating a resumption of the primary uptrend.
The momentum setup is supportive, with RSI registering a breakout and currently hovering near the 55 level, reflecting improving strength without entering overbought territory.
Additionally, the MACD has generated a bullish crossover, reinforcing the positive momentum bias.
From a price–volume perspective, the stock has also managed to close above its quarterly VWAP, which typically acts as an important medium-term reference point for institutional participants and further validates the breakout.
“Given the confluence of these bullish technical signals, a buy-on-dips approach is recommended in the 495–485 zone. On the upside, the stock has the potential to move towards the 550 level in the near to medium term. Risk should be managed with a strict stop loss placed below 460 on a daily closing basis to protect against any false breakout or broader market weakness,” said Patel.
Havells India | Previous close: 1,439.90 | Buying range: 1,445 to 1,430 | Target price: 1,560 | Stop loss: 1,365
According to Patel, Havells has exhibited a strong improvement in technical structure, marked by a clear RSI range breakout alongside a decisive price trendline breakout, as observed on the chart.
Momentum indicators are supportive, with the RSI indicating strengthening buying interest, while the MACD has confirmed a bullish crossover, reinforcing the positive bias.
From a trend perspective, the stock has closed above its 10- and 20-day DEMA, signaling short-term strength, and has also reclaimed the monthly VWAP, which enhances the credibility of the emerging uptrend and reflects improved institutional participation.
“Given this favorable technical setup, a buy-on-dips strategy is advisable in the 1,445–1,430 zone. On the upside, the stock has the potential to move towards the 1,560 level in the near term,” said Patel.
“Risk management remains crucial, and a stop loss should be maintained below 1,365 on a daily closing basis to guard against any reversal or breakdown in momentum,” Patel said.
Indian Renewable Energy Development Agency (IREDA) | Previous close: 146.64 | Buying range: 147 143 | Target price: 162 | Stop loss: 136
Patel said IREDA is showing encouraging technical signals after forming a well-defined double bottom pattern on the chart, indicating a potential trend reversal.
The setup is further supported by bullish divergence, suggesting improving momentum despite earlier price weakness.
The stock has managed to close above its 10-day exponential moving average (DEMA), highlighting short-term strength.
Additionally, the RSI has witnessed a trendline breakout, reflecting renewed buying interest, while the MACD has generated a bullish crossover, reinforcing the positive bias.
Price action has also confirmed strength with a close above the previous swing high, which improves the probability of further upside.
“Based on this technical structure, traders may consider buying on dips in the 147–143 zone. On the upside, the stock has the potential to move toward 162. A strict stop loss should be maintained at 136 on a daily closing basis to manage risk,” 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.
