Stocks to buy for short term: Frontline indices, the Sensex and the Nifty 50, ended higher on Wednesday, 20 May, supported by gains in select heavyweights.
The Sensex ended 118 points, or 0.16%, higher at 75,318.39, while the Nifty 50 closed at 23,659, rising 41 points, or 0.17%.
Experts believe the domestic market may remain range-bound over the next few sessions, reacting to global cues.
According to Amol Athawale, VP of Technical Research at Kotak Securities, 24,500 and 24,400 are likely to act as immediate support, while the 23,800–23,850 range may act as a crucial resistance.
"If the market sustains above 23,850, further upside towards 23,950–24,000 could be seen. However, a breakdown below 23,400 may increase selling pressure and drag the indices towards 23,250–23,200," said Athawale.
"Considering the current sideways and non-directional market structure, traders are advised to adopt a level-based intraday trading strategy," Athawale said.
Stock picks for the short term
Amol Athawale recommends the following three stocks to buy for the next 1-2 weeks:
Praj Industries | Previous close: ₹386.80 | Target price: ₹415 | Stop loss: ₹370
Athawale highlighted that after declining from higher levels, Praj Industries found support at the retracement zone and rebounded, showing a steady recovery from its recent lows.
On the daily chart, it has also broken out of a downward-sloping trend line, indicating strengthening momentum.
This price action signals the potential start of a fresh bullish phase from current levels.
"For the upcoming trading sessions, the ₹370 level will act as a key support. If the stock sustains above this mark, it could continue its upward movement and gradually advance towards the ₹415 level in the near term," said Athawale.
HDFC Life Insurance Company | Previous close: ₹605.10 | Target price: ₹650 | Stop loss: ₹580
Athawale said after its downward trend, HDFC Life Insurance Company shares have entered an accumulation phase, moving within a defined range on the daily chart.
Recent bullish activity suggests improving strength and rising buying interest.
A breakout from the range appears likely in the near term, offering a favourable risk-reward opportunity from current levels.
"For positional traders, ₹580 is a crucial level to watch. Sustaining above this mark could confirm an uptrend and drive the stock toward ₹650. However, a close below ₹580 would weaken the structure, and traders may consider exiting long positions to manage downside risk effectively," said Athawale.
ONGC | Previous close: ₹298.30 | Target price: ₹320 | Stop loss: ₹288
Athawale pointed out that after a sharp uptrend rally, ONGC witnessed a bit of selling pressure, but eventually its downward momentum paused, and it has found support.
However, on the daily charts, the stock has formed a cup and handle kind of formation, and a fresh breakout from the resistance zone is very likely to occur in the coming trading sessions.
"As long as the stock is trading above ₹288, the bullish texture is likely to continue. Above which, the stock could move up to ₹320," said Athawale.
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Disclaimer: This story 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.
