Stocks to buy for short term: Maruti, Tata Steel among 3 shares Anand Rathi's Jigar Patel recommends for next 1-2 weeks

Stocks to buy for the short term: The domestic market benchmark Nifty 50 rose for the third consecutive session on Friday, 3 July, wrapping up the week with a gain of nearly 1%. It was the fourth consecutive weekly gain for the index as sentiment improved amid easing geopolitical risks, declining crude oil prices, and reduced foreign capital outflow.

In the cash segment, FPIs bought Indian equities worth ₹1,355.33 on Friday. So far in July, FPIs have bought Indian stocks worth ₹708 crore, as per NSDL data.

On the technical front, the Nifty 50 broke out above the crucial 24,250 resistance, ending at 24,270.85 on Friday.

According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, this breakout significantly strengthens the bullish technical structure and suggests that the index could gradually move towards the 24,400–24,600 zone, where some profit booking or temporary consolidation cannot be ruled out.

However, Patel added that any corrective move from higher levels should be viewed as a healthy retracement rather than a reversal, offering investors an opportunity to accumulate quality stocks at better prices.

"On the downside, 23,800 remains the immediate support, followed by the stronger support near 23,500. As long as these levels remain intact, the overall market structure continues to favour a 'buy on dips' strategy, with the possibility of further upside in the coming weeks," said Patel.

For Bank Nifty, Patel believes a decisive close above 59,000 would confirm the next leg of the rally and pave the way for fresh highs, whereas a sustained break below 57,000 could trigger a short-term corrective phase.

"Until either of these levels is breached, traders should expect range-bound movement while maintaining a constructive medium-term outlook on the banking index. Overall, the broader market trend remains positive, and selective buying on declines continues to be the preferred strategy," said Patel.

Stock picks for the short term

Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:

Maruti Suzuki India | Previous close: ₹14,366 | Target price: ₹15,250 | Stop loss: ₹13,800

Patel pointed out that Maruti Suzuki India share price has delivered a strong breakout above the ₹14,200–14,300 resistance zone, backed by a notable rise in volumes, indicating fresh buying interest.

The stock is trading well above its 100-week ( ₹13,324) and 200-week ( ₹11,738) moving averages, reaffirming a strong long-term bullish trend.

Momentum indicators are also turning favourable, with the RSI at 55 moving above the 50 mark, while the MACD has generated a bullish crossover, signalling improving upside momentum.

The OBV (on-balance volume) is making higher highs, reflecting sustained accumulation, and the cumulative volume delta (CVD) has turned positive, suggesting buying pressure is strengthening.

"Although the ADX at 23 indicates the trend is still developing, the overall technical structure remains positive. The stock has the potential to move towards ₹15,200–15,500, while ₹13,800 should act as immediate support," said Patel.

"Buy the stock between ₹14,100 and ₹14,400 in a staggered manner. Maintain a stop loss at ₹13,800, with an upside target of ₹15,250," Patel said.

Dr. Reddy's Laboratories | Previous close: ₹1,374.10 | Target price: ₹1,480 | Stop loss: ₹1,300

As per Patel, Dr Reddy's Laboratories' share price is witnessing a strong breakout above its falling trendline resistance, indicating a positive shift in momentum.

The stock is trading comfortably above its 100-week moving average ( ₹1,265), reinforcing the long-term bullish structure.

Momentum indicators are supportive, with the RSI at 63, suggesting strengthening buying momentum without entering the overbought zone.

The MACD has generated a bullish crossover, signalling improving upside potential, while the OBV is trending higher, indicating sustained accumulation.

The CVD has also turned positive, reflecting renewed buying interest. Even though the ADX at 13 suggests the trend is still in its early stages, the overall technical setup remains constructive.

"Buy the stock in the ₹1,380–1,340 range in a staggered manner, with a stop loss at ₹1,300 and an upside target of ₹1,480," said Patel.

Tata Steel | Previous close: ₹189.80 | Target price: ₹205 | Stop loss: ₹180

As per Patel, Tata Steel's share price has formed a hidden bullish divergence near its previous breakout zone, indicating that the broader uptrend remains intact despite the recent correction.

The current support zone aligns with the 200-day simple moving average (SMA), making it a crucial demand area.

Momentum indicators also suggest the downside may be limited, with the MACD slipping into a heavily oversold zone, similar to the levels witnessed in January 2025, from where the stock staged a strong recovery. This confluence of technical factors strengthens the possibility of a rebound from current levels.

"Buy the stock between ₹190 and ₹186 in a staggered manner. Maintain a stop loss at ₹180 on a closing basis, with an upside target of ₹205," Patel said.

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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.