Stocks to buy for short term: Ajit Mishra of Religare Broking suggests 3 technical picks; do you own?

Stocks to buy for the short term: The Nifty 50 ended in the red in the previous session on Wednesday, December 24, snapping a three-day winning run. The benchmark index closed with a mild loss of 0.13% at 26,142.10 due to the absence of fresh domestic triggers and mixed global cues.

As the year draws to a close, the market is witnessing muted volume and weak breadth due to the holiday season. Investors appear cautious ahead of the start of the Q3 earnings season. Two IT majors- HCL Tech and TCS- will announce their December quarter results on January 12.

According to Ajit Mishra, SVP of Research at Religare Broking, for fresh momentum, stronger participation from the banking index will be essential. He says a decisive breakout above the 59,500 level in the Bank Nifty will likely fuel the next leg of the up move.

Until then, Mishra advises participants to adopt a stock-specific approach.

"Focus on sectors showing consistent outperformance, such as private banks, metals and auto, and adhere to disciplined risk management in the low-volume environment," Mishra said.

"We maintain a positive bias amid the ongoing consolidation in the index and continue to recommend a buy-on-dips approach as long as the Nifty holds its prevailing uptrend," said Mishra.

Stock picks for the short term

Mishra recommends buying the following three stocks for the next one to two weeks, highlighting a favourable technical setup for them.

HCL Technologies | LTP: ₹1,674.70 | Target price: ₹1,780 | Stop loss: ₹1,620

Mishra pointed out that improving traction is visible across IT counters, and HCL Tech is aligning well with the broader sectoral trend.

After emerging from a corrective phase, the stock has demonstrated resilience by sustaining above its 20-day EMA. It has also formed a fresh pivot resembling a flag pattern, indicating a continuation of the ongoing uptrend.

"Considering the supportive sectoral backdrop and positive chart structure, traders may consider long positions in HCL Tech within the mentioned range," said Mishra.

Britannia Industries | LTP: ₹6,030 | Target price: ₹6,470 | Stop loss: ₹5,830

The FMCG space continues to exhibit a mixed trend, with Britannia emerging as a relative outperformer, having gradually trended higher over the past nine months.

As Mishra highlighted, after breaking out of a cup and handle continuation pattern, the stock saw a mild retracement and has since formed a fresh base, indicating healthy consolidation.

The broader structure remains firmly placed within a strong uptrend, and the recent range breakout suggests potential for further upside.

Additionally, the weekly RSI has registered a fresh bullish crossover, pointing to a revival in positive momentum.

"In view of the supportive technical structure, traders may consider initiating long positions in the stock within the specified parameters," said Mishra.

Manappuram Finance | LTP: ₹315.75 | Target price: ₹365 | Stop loss: ₹295

Mishra highlighted that Manappuram Finance has delivered a decisive upside breakout from a prolonged consolidation range, supported by a strong bullish candle and a visible surge in volumes, confirming genuine buying interest.

The stock continues to trade comfortably above its short- and medium-term moving averages, with the rising 50-DMA acting as a dynamic support, while the long-term 200-DMA remains firmly upward sloping, reinforcing the broader uptrend.

Momentum indicators appear to be strengthening, suggesting scope for continuation.

"As long as the price holds above the breakout zone, the stock is likely to trend higher, with any minor pullback offering a potential buy-on-dips opportunity," 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.