Stocks to buy for short term: Delhivery among 3 stocks Ajit Mishra of Religare Broking recommends for next 1-2 weeks

Stocks to buy for the short term: Domestic market benchmarks extended gains for the second consecutive session on Thursday amid a further decline in crude oil prices, progress in the US-Iran talks, and mixed global cues.

Nifty ended at 24,176, nearing the psychologically important 24,200 mark. The market witnessed across-segment buying, reflecting improving market sentiment.

Meanwhile, IT stocks posted solid gains on Thursday, with the index jumping nearly 5% on short covering after the recent fall.

Ajit Mishra, SVP of Research at Religare Broking, pointed out that the Nifty has reclaimed its medium-term moving average, the 100-day EMA, around 24,130, indicating an improvement in the overall bullish tone.

Mishra believes a sustained move above this level could pave the way for an extension towards the 24,450–24,600 zone in the near term. On the downside, 24,000 is expected to provide immediate support, followed by 23,800.

"With rotational participation expanding across sectors and broader markets continuing to outperform, we maintain a positive stance and recommend following a buy-on-dips approach while focusing on relatively stronger stocks and maintaining disciplined risk management," said Mishra.

Stock picks for the short term

Ajit Mishra recommends buying the following three stocks for the next 1-2 weeks, while keeping their respective target prices and stop losses in focus:

Delhivery | Previous close: ₹509.30 | Target price: ₹548 | Stop loss: ₹490

Mishra pointed out that after a prolonged phase of underperformance following its listing gains in July 2022, Delhivery share price has been consolidating and building a broad base near the lower end of its corrective phase.

This base-building process has led to the formation of an inverse head and shoulders pattern, a widely recognised bullish reversal structure that typically develops after an extended downtrend.

The stock has now registered a strong volume-based breakout from this pattern while simultaneously reclaiming its key weekly moving averages, signalling improving price strength and strengthening trend momentum.

"The overall technical setup suggests a trend reversal, with the stock well-positioned to witness a meaningful upside move from current levels," said Mishra.

ICICI Bank | Previous close: ₹1,400| Target price: ₹1,500 | Stop loss: ₹1,350

Mishra underscored that there is renewed buying interest in select private banking heavyweights, with ICICI Bank leading from the front.

After undergoing a corrective decline for nearly a year, the stock has broken above its declining trendline, signalling the end of the corrective phase.

Additionally, it has registered a breakout from a multi-month consolidation in the form of a double bottom pattern, confirming a trend reversal.

"The stock continues to trade well above its key daily and weekly moving averages, reflecting sustained price strength. Considering the favourable chart structure and the sectoral strength, one can initiate long positions in ICICI Bank within the mentioned range," said Mishra.

One 97 Communications | Previous close: ₹1,213.40 | Target price: ₹1,320 | Stop loss: ₹1,160

As per Mishra, One 97 Communications (Paytm) share price has formed a strong base above the neckline support of its previous breakout zone, which coincides with the 100 and 200 WEMA.

It has witnessed a fresh breakout from this base in the form of a cup and handle pattern, indicating the potential for a fresh up move.

"The constructive price structure, coupled with positive price action, reinforces the bullish outlook and hence, traders can accumulate the stock within the recommended levels," said Mishra.

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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.