Stocks to buy for short-term: From HDFC Bank to Tata Power— experts recommend 5 technical picks for next 2-3 weeks
Stocks to buy for the short-term: Indian stock market benchmark Nifty 50 witnessed some profit booking in intraday trade on Tuesday, June 17, a day after rising by a per cent, amid heightened tensions between Israel and Iran.
The Nifty 50 fell about 0.40 per cent to slip below 24,850 during the session. Experts expect the market to remain volatile due to global factors. The US Federal Reserve's monetary policy outcome, due on June 18, along with Chairman Jerome Powell's commentary on growth and inflation trends, is also in focus.
Experts suggest that at this juncture, investors should focus on stocks with strong fundamentals and favourable technical indicators.
HDFC Bank has witnessed a breakout from a rectangle consolidation pattern, signalling a bullish continuation of its prevailing uptrend.
The stock rebounded sharply after a post-breakout retest, reinforcing its strength.
It continues to form higher highs and higher lows, and is trading above its 55-period exponential moving average, underscoring sustained bullish momentum.
An RSI reading of 51, along with a bullish divergence on the MACD, further supports the positive outlook.
The overall technical setup suggests a favourable buy-on-dips opportunity for participants looking to capitalise on the ongoing trend.
Tata Power has given a breakout from a rounding bottom pattern, signalling a bullish trend reversal.
Prices gained more than 50 per cent during the major bearish leg from ₹ 494 to ₹ 326 and are now gearing up to approach the 61.8 per cent retracement of this leg.
Post-breakout, the stock retraced mildly and is now consolidating near the 200-day EMA, indicating strength and offering a buy-on-dip opportunity.
The formation of higher highs and higher lows suggests a sustained uptrend. The stock is trading above its 21- and 55-day EMAs, while an RSI of 52 and bullish MACD convergence reinforce the positive momentum.
KPIT Technologies has delivered a decisive breakout from an inverse head and shoulders pattern, a well-established bullish reversal formation, signalling a potential trend shift in favour of the bulls.
This breakout is accompanied by a notable surge in volumes, indicating strong buying interest and participation. Importantly, the breakout coincides with the 200 EMA, which had earlier acted as a major resistance level.
The stock is now comfortably trading above its key 21- and 55-day EMAs, affirming underlying strength. Additionally, an RSI reading of 65 and a bullish MACD crossover further validate the positive momentum, suggesting continued outperformance ahead.
Godrej Industries has given a breakout followed by a retest from an inverted head and shoulders pattern on the daily chart.
This move is supported by a significant rise in trading volume, indicating strong bullish momentum.
"A close above ₹ 1,310 could further confirm the breakout, paving the way for short-term targets of ₹ 1,450 and ₹ 1,500. On the downside, immediate support lies at ₹ 1,260, making it a good buying opportunity on dips. For risk management, a stop-loss should be placed at ₹ 1,235," said Bhojane.
Dhanuka Agritech is on the verge of a breakout from its recent daily range, backed by rising trading volumes — a positive sign for a bullish move.
"A decisive close above ₹ 1,720 may lead to upside targets of ₹ 1,900 and ₹ 1,920. Immediate support is seen near ₹ 1,670, offering a favourable entry on dips. To limit downside risk, a stop-loss is advised at ₹ 1,630," said Bhojane.
KPIT Technologies is showing signs of an inverted head and shoulders breakout on the daily chart. The breakout is accompanied by a notable spike in volume, which adds strength to the bullish outlook.
"A sustained close above ₹ 1,410 can potentially push prices towards ₹ 1,550 and ₹ 1,600 in the near term. Immediate support is placed at ₹ 1,350, making dips attractive for fresh entries. To manage risk, a stop loss at ₹ 1,320 is recommended," Bhojane said.
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Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
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