Stocks to buy for short term: From ICICI Bank to JSW Energy— Jigar Patel of Anand Rathi suggests three technical picks

Stocks to buy for the short term: The domestic market benchmarks suffered sharp losses for the week ended January 9 on rising US tariff concerns, increased geopolitical uncertainties, and heavy foreign capital outflows. The Sensex crashed 2,186 points, or 2.5%, while the Nifty 50 also dropped by 2.5% last week.

"The Nifty 50, which began the year at record highs, experienced a series of declines over the last five consecutive sessions. This downturn was fueled by renewed apprehensions regarding potential US tariff measures, ongoing outflows from foreign institutional investors (FIIs), and escalating global uncertainties. Additionally, profit-taking in major stocks exacerbated selling pressure, leading to a rapid shift from the early-January optimism," Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted.

On the technical front, Patel noted that the Nifty fell below crucial technical levels, concluding the week within the 25,700–25,900 range after experiencing substantial intra-week declines. This period marked a pronounced move towards risk aversion and a more cautious stance in the market.

The Nifty’s inability to break out and subsequent sharp reversal highlighted exhaustion at elevated levels.

"The index has retraced towards a key support point near the weekly low of approximately 25,600, which acts as an immediate benchmark. A significant breakdown below this level could push the decline further towards 25,400, which seems to be the maximum near-term downside based on the broader price structure," said Patel.

"Although momentum indicators remain weak, the index is approaching short-term oversold conditions, hinting at the potential for a technical rebound. On the upside, any recovery is anticipated to encounter strong resistance in the 25,800–26,000 range, posing a critical challenge for bullish investors. Consequently, the current scenario necessitates a cautious and selective strategy, with confirmation required before initiating any new directional positions," Patel said.

Stock picks for the short term

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

ICICI Bank | Previous close: ₹1,404.30 | Buying zone: ₹1,405–1,390 | Target price: ₹1,465 | Stop loss: ₹1,365

According to Patel, ICICI Bank's share price has delivered a decisive breakout above its monthly resistance pivot as well as the weekly pivot resistance, supported by a clear surge in volumes, which validates the strength of the move.

In addition, price has also crossed above a long-standing falling trendline, confirming a shift in the broader trend from consolidation to expansion on the upside.

Momentum indicators are in sync with the price action: MACD has generated a bullish crossover, indicating improving upside momentum, while RSI has also witnessed a trendline breakout, reflecting renewed buying interest.

The alignment of price, volume, and momentum signals enhances the probability of further continuation in the ongoing uptrend.

"Considering this robust technical structure, traders may consider going long in a staggered manner in the zone of ₹1,405– ₹1,390, keeping a stop loss at ₹1,365 on a daily closing basis. On the upside, the stock has potential to move towards the ₹1,465 level in the near term," said Patel.

Endurance Technologies | Previous close: ₹2,622 | Buying zone: ₹2,630–2,600 | Target price: ₹2,850 | Stop loss: ₹2,500

Patel pointed out that Endurance Technologies is showing encouraging signs of a medium-term trend reversal after forming a strong base near its 200-day exponential moving average (DEMA), indicating long-term support and renewed institutional interest.

The stock has managed to close above the weekly R1 pivot as well as the weekly VWAP, highlighting improving price strength and acceptance at higher levels.

Momentum indicators further support the bullish setup. MACD has displayed a bullish divergence, suggesting that selling pressure is gradually losing steam, while RSI is sustaining above the 50 mark, confirming a shift in momentum in favour of buyers.

Structurally, the price action indicates a higher probability of an upward continuation rather than a corrective phase.

"Based on the overall technical structure, traders may consider buying Endurance in the zone of ₹2,630– ₹2,600, with a strict stop loss at ₹2,500. On the upside, the stock has potential to move towards the ₹2,850 level in the near term," said Patel.

JSW Energy | Previous close: ₹490.25 | Buying zone: ₹490–480 | Target price: ₹535 | Stop loss: ₹460

According to Patel, JSW Energy has recently confirmed a bullish breakout from an inverse head and shoulders pattern, supported by a strong surge in volumes, which validates the reliability of the formation.

This breakout indicates a clear shift from a corrective phase to a potential trend reversal on the upside.

The stock is currently witnessing a mild pullback, but the decline is accompanied by relatively low volumes, suggesting that selling pressure is weak and the move is more of a healthy retest rather than a breakdown.

Importantly, the weekly pivot support is closely aligned with the neckline of the pattern, strengthening the support zone.

This confluence enhances the probability of a fresh upward move from current levels.

"Based on this technical structure, traders may consider buying JSW Energy in the zone of ₹490–480, with a stop loss at ₹460 on a closing basis. The stock is expected to move towards the ₹535 target in the near term," 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.