Stocks to buy for short term: Axis Securities recommends Vedanta, ICICI Pru, Ashok Leyland shares for up to 13% upside

The Indian stock market came under another round of selling pressure during Tuesday's trade, December 16, as both the Nifty 50 and Sensex slipped 0.60% and 0.62%, respectively, to the day's lows. The relentless fall in the Indian rupee and sustained selling pressure by foreign investors continued to weigh on market sentiment.

The lack of domestic triggers is forcing investors to look to global cues, which also remain unsupportive, as resurfacing concerns over AI valuations and rising geopolitical tensions are driving sentiment toward safe-haven assets.

The Indian rupee breached the 91 mark against the US dollar for the first time, falling to another historic low of 91.07.

Domestic brokerage firm Axis Securities has identified three stocks — Vedanta, ICICI Prudential Life Insurance Company, and Ashok Leyland — that could deliver returns of up to 13% over the next four weeks based on technical factors.

As per the brokerage, all three stocks have broken key resistance patterns, supported by bullish RSI readings, indicating short- to medium-term uptrends. The brokerage sees defined upside potential over a 3–4 week horizon, with target gains ranging from 7% to 13%.

Stocks to buy

Vedanta – Target price up to ₹603 | Upside 8–13%

Axis Securities said, “On the weekly chart, Vedanta delivered a decisive breakout above the strong multi-resistance zone near ₹527. The breakout was accompanied by a bullish candle, signalling a positive bias and the continuation of the medium-term uptrend.”

It noted that the stock continues to trade above key moving averages (20-, 50-, 100-, and 200-day SMAs), reflecting strong momentum and a positive bias across both short- and medium-term timeframes. The stock maintains a higher high–low structure and trades well above its rising trendline, highlighting a strong bullish setup.

The brokerage further said that momentum indicators align with this view, as the weekly RSI is holding above its upward-sloping trendline and reference line, validating the strength in price action.

It indicates that the above analysis points to an upside toward ₹576–603 levels, with a recommended holding period of 3 to 4 weeks.

Ashok Leyland – Target price up to ₹180 | Upside 8–11%

Ashok Leyland has posted a decisive breakout above the bullish flag pattern at ₹160, supported by a strong bullish candle, signalling continuation of the medium-term uptrend.

The brokerage added that the stock maintains a higher high–low structure, highlighting a strong bullish setup. The daily RSI is trending higher and holding firmly above its reference line, reinforcing positive momentum and a constructive outlook.

The RSI consistently respects its upward-sloping trendline, validating the constructive bias in price action. The brokerage sets a target between ₹175 and 180 levels, with a recommended holding period of 3 to 4 weeks.

ICICI Prudential Life Insurance – Target price up to ₹700 | Upside 7–10%

The brokerage said the stock has delivered a decisive breakout above its medium-term downward-sloping trendline at ₹645, in place since the September 2024 all-time high, signalling the end of its corrective phase and the start of a medium-term uptrend.

The weekly RSI has broken above its downward-sloping trendline, reinforcing persistent strength and a firming bullish outlook. The brokerage added that the RSI continues to hold above its reference line, signalling a persistent positive bias.

Axis Securities expects the stock to rise between ₹676 and 700 levels, with a recommended holding period of 3 to 4 weeks.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.