Stocks to buy for the short term: The Indian stock market ended lower on Wednesday amid profit-booking and caution ahead of the US Personal Consumption Expenditures Price Index data for July.
The Nifty 50 rose to near 24,380 during the session but failed to hold gains, ending 127 points, or 0.52%, lower at 24,208 amid selling pressure at higher levels.
According to Amol Athawale, VP - Technical Research at Kotak Securities, the index formed a bearish candle on the daily chart, indicating further weakness.
Athawale said that the intraday market texture remains weak, but fresh selling is likely only below 24,150. Below this level, the index could slide to 24,000-23,950. On the flip side, above 24,300, the rally could extend to 24,500-24,550.
"The overall market texture remains non-directional; hence, level-based trading would be the preferred strategy for day traders," said Athawale.
Stock picks for the short term
Amol Athawale recommends buying the following three stocks for the next 1-2 weeks:
Bank of Maharashtra | Previous close: ₹85.60 | Target price: ₹92 | Stop loss: ₹83
Athawale underscored that, on a daily basis, Bank of Maharashtra shares have been trading range-bound after correcting from higher levels.
However, it has given a range breakout move in the recent session. The closing above the resistance line indicates that further bullish momentum is likely to continue from current levels.
"For the next few trading sessions, ₹83 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹92," said Athawale.
Grasim Industries | Previous close: ₹3,299.90 | Target price: ₹3,540 | Stop loss: ₹3,190
Athawale pointed out that after the upward rally, Grasim Industries shares have been consolidating within a symmetrical triangle pattern on the daily chart.
The presence of higher lows highlights sustained buying interest and underlying strength, suggesting a potential breakout ahead.
"For traders, the key level to monitor is ₹3,190, which acts as immediate support. If the stock holds above this level, the positive trend structure would remain intact," said Athawale.
"A decisive move beyond the consolidation range may trigger further upside, with the stock likely to head toward ₹3,540 in the coming sessions," Athawale said.
Lupin | Previous close: ₹2,185 | Target price: ₹2,350 | Stop loss: ₹2,120
According to Athawale, Lupin shares are near their multiple support zone after a short-term price correction.
The incremental volume activity and the inverted hammer candlestick formation near the support zone indicate that the downside is limited. Therefore, the stock is expected to rebound and see bullish momentum from current levels.
"For positional traders, ₹2,120 would be the decisive level. Trading above the same uptrend formation will continue till ₹2,350. However, if it closes below ₹2,120, traders may prefer to exit from trading long positions," said Athawale.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. 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.
