Stocks to buy for short term: From Birlasoft to Natco Pharma— Anand Rathi's Jigar Patel recommends 3 shares

Stocks to buy for the short term: The Indian stock market is expected to remain weak on Monday, April 6, amid higher crude oil prices, a stronger dollar, and mixed global cues.

The US-Iran war has entered its sixth week, keeping oil prices near $110 a barrel and raising concerns about its ramifications for the Indian economy. In the near term, the market is expected to remain volatile, with global cues as the main dominating factor.

According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the near term outlook for the Nifty 50 remains mixed, but is turning more constructive on a broader timeframe.

Patel highlighted that after sliding toward the 22,200 zone, the index staged a sharp rebound to 22,700, indicating firm demand at lower levels. This pullback, combined with a bullish divergence on the daily RSI, signals fading bearish momentum.

However, definitive confirmation is still awaited.

Patel underscored that the index continues to trade below the falling trendline resistance near 23,100, with a stronger supply zone around 23,400.

"Only a decisive breakout above these levels would confirm a durable bottom and pave the way for a move toward new highs. Until then, volatility and consolidation may persist as sentiment stabilises," said Patel.

According to Patel, on the downside, 22,000–21,700 is expected to serve as a strong base if retested.

"While recent price action hints that the worst may be behind, the market remains in a transition phase — one where the risk-reward is gradually tilting in favour of the bulls," said Patel.

For Bank Nifty, Patel believes a bullish RSI divergence further indicates waning downside momentum. However, here too, confirmation is pending, with the key breakout zone placed around 52,500.

"A sustained move above this level would signal a firm bottom. On the downside, the 50,000–49,000 zone is likely to act as strong support in the near term," said Patel.

Jigar Patel recommends buying the following three stocks for the next one to two weeks:

Birlasoft | Previous close: ₹370.85 | Accumulate in the ₹370–355 zone | Target price: ₹470 | Stop loss: ₹315

Patel highlighted that since April 2025, Birlasoft has been forming a meaningful base, developing a clear triple bottom pattern on the weekly timeframe.

This structure, combined with a three-point bullish RSI divergence, indicates strong buying interest and suggests that the zone between ₹325–335 is acting as a robust long-term support area.

"With the stock currently trading near ₹370, the technical setup points toward a favourable risk-reward opportunity for medium-term investors," Patel observed.

"A staggered accumulation strategy is advised within the ₹370–355 band to manage volatility and improve entry levels. As long as the stock holds above the ₹315 closing-basis stop loss, the probability of an upward move remains strong. We expect the stock to gradually head toward ₹470, supported by improving momentum," said Patel.

Natco Pharma | Previous close: ₹1,027.55 | Buy in the ₹1,030–1,000 zone | Target price: ₹1,125 | Stop loss: ₹950

Patel highlighted that Natco Pharma has recently rebounded from its previous breakout zone, reinforcing the strength of its ongoing uptrend.

The Williams Alligator indicator shows all three lines aligned and running parallel, signalling an established and sustainable trend.

Momentum indicators further support the bullish outlook. The MACD has triggered a bullish crossover above the zero line, the RSI is holding firmly above 60, and the DMI setup remains positive, all indicating strong underlying buying pressure.

"Given this confluence of trend and momentum signals, we recommend a buy in the ₹1,030–1,000 zone, with a stop loss at ₹950. The stock is expected to move toward ₹1,125 in the near term as long as these technical conditions remain intact," said Patel.

Gujarat Ambuja Exports (GAEL) | Previous close: ₹140.35 | Buy in the ₹140–135 zone | Target price: ₹155 | Stop loss: ₹126

Patel highlighted that in December 2025, GAEL delivered a decisive breakout above its 50-week EMA after an extended consolidation phase, signalling a clear shift toward bullish sentiment.

Following the breakout, the stock has seen a healthy retracement and is currently trading above the Williams Alligator on the weekly timeframe, reinforcing the strength of the prevailing trend.

The pullback remains constructive, as the RSI has eased in line with price action and stabilised near neutral levels—an indication that momentum is cooling without turning weak.

This harmonious alignment between price and indicators suggests the broader uptrend remains intact.

"The ₹140–135 zone offers a favourable buying opportunity, with a stop loss at ₹126. On the upside, the stock holds potential to move toward ₹155 in the coming weeks," 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.