Stocks to buy for short term: Jigar Patel of Anand Rathi suggests these 3 shares with bullish technical indicators

Stocks to buy for the short term: The Indian stock market benchmark Nifty 50 ended the week in the red, extending its weekly losing run to the third consecutive week. For the week ended Friday, December 19, the Nifty 50 slipped by 0.31% even as the index clocked a healthy gain of 0.58% to end at 25,966.40 on Friday. On a monthly scale, the benchmark index is down by about 1%, looking set to snap its three-month winning streak.

Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that the week gone by was marked by choppy yet constructive price action, where dips were quickly absorbed, and selling pressure failed to accelerate. The Nifty eventually settled around 25,950 with a marginal change, underscoring a phase of high-level consolidation rather than trend exhaustion.

Patel said the index retains a cautiously bullish tone while navigating its ongoing range.

"Support at 25,700–25,800—aligned with a rising trendline—has held firm, while price action is now clustered near the 25,900–26,000 zone. On the upside, resistance at 26,020–26,080 remains a pivotal hurdle; analysts say a breakout with volume could confirm an inverse head-and-shoulders formation on hourly and daily charts, clearing the way toward 26,300–26,600," said Patel.

"As long as the 25,600–25,700 band holds on a weekly basis, the primary uptrend remains unchallenged. The larger multi-year cup-and-handle structure also stays in play, supporting expectations of a gradual upside extension into early 2026," said Patel.

Stock picks for the short term

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

CEAT | Previous close: ₹3,931.70 | Target price: ₹4,300 | Stop loss: ₹3,765

Patel pointed out that CEAT has undergone a healthy corrective phase, declining nearly 17.6% from its recent peak of ₹4,438 and slipping toward the ₹3,930–3,900 zone.

This area coincides with the 50% Fibonacci retracement of the prior rally, indicating a potential demand pocket.

Technical structure is beginning to stabilise, with early signs of a falling trendline breakout visible on both price action and RSI, suggesting momentum flattening and a possible reversal setup.

Volumes have also normalised after the correction, reducing the risk of panic unwinding.

"If the stock sustains above ₹3,900, a target of ₹4,300 appears feasible in the near term. Traders may consider accumulating in the ₹3,950–3,900 zone with a stop-loss at ₹3,765 on a daily closing basis," said Patel.

Endurance Technologies | Previous close: ₹2,695.80 | Target range: ₹2,900–2,950 | Stop loss: ₹2,545

Patel highlighted that Endurance Technologies recently corrected about 14.5% from its peak of ₹2,986 and is currently trading near ₹2,685, where the stock has shown signs of stabilisation.

This zone aligns with the 38.2% Fibonacci retracement, the 200-DEMA, and a previous breakout region—indicating layered technical support.

Early bullish signals are also visible through positive divergence on both RSI and MACD, suggesting weakening downside momentum and the possibility of a near-term reversal.

"If the stock sustains above ₹2,660, a rebound toward ₹2,900–2,950 looks achievable, supported by improving risk-reward dynamics and sectoral strength. Short-term traders can consider accumulating within the ₹2,700–2,660 band, while maintaining a stop loss at ₹2,545 on a daily closing basis to manage volatility," said Patel.

Shyam Metalics and Energy | Previous close: ₹818.05 | Target price: ₹895 | Stop loss: ₹775

As per Patel, Shyam Metalics and Energy has been under corrective pressure for the past two to three months, declining nearly 22% from its recent peak of ₹988 and drifting toward the ₹818–810 support region.

This pullback has brought the stock closer to a demand zone, where the risk-reward profile begins to improve.

On the technical front, price action indicates an early trendline breakout, suggesting that short-term selling momentum may be tapering off.

Momentum indicators are also offering supportive signals, with the RSI not only reclaiming its falling trendline but also displaying bullish divergence—an early indication that downside exhaustion may be in place.

"These factors collectively point toward the possibility of a near-term reversal, provided the stock holds above its immediate support levels," said Patel.

"Traders may consider accumulating Shyam Metalics shares within the ₹820–810 band, keeping a stop loss at ₹775 on a daily closing basis, and looking for a potential upside target near ₹895," said Patel.

Read all market-related news here

Read more stories by Nishant Kumar

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.