Stocks to buy for short term: From NMDC to PNB— Ajit Mishra of Religare Broking recommends these 3 shares

Stocks to buy for short term: After clocking a healthy gain of 0.54 per cent in the previous session, the Indian stock market benchmark Nifty 50 rose 0.40 per cent to hit an intraday high of 25,285 in intraday trade on Friday, October 10, despite weak global cues.

The gains in the benchmark index were led by select banking heavyweights, including SBI, HDFC Bank and Axis Bank. The Nifty Bank index rose more than half a per cent during the session.

Experts expect the market to extend gains, potentially reaching the levels of 25,650 in the near term.

"After three days of consolidation, indications now suggest potential trend resumption. However, a decisive breakout above 25,200 would confirm the move, with upside targets seen at 25,400 and 25,650 levels," said Ajit Mishra, SVP of research at Religare Broking.

"On the downside, a break below 24,950 may derail the positive tone and extend the consolidation phase. Amid this setup, traders should focus on identifying sectoral outperformers and use intermediate dips to accumulate quality names," said Mishra.

Mishra suggests buying the following three stocks for the next one to two weeks as he sees a favourable technical setup for them.

Stock picks for short term

NMDC | Buy | Target price: ₹87 | Stop loss: ₹75

Mishra pointed out that NMDC has been steadily moving higher, supported by rising volumes.

The stock has concluded its corrective phase with a decisive breakout above the falling trendline.

Additionally, it has surpassed a key resistance zone, confirming a breakout from a cup-and-handle formation.

After this move, the stock consolidated within a narrow range, effectively digesting its recent gains, and has now broken out from this base with renewed volume support.

"Considering the constructive price action and the positive sectoral outlook, the ongoing upward momentum is likely to sustain," said Mishra.

Punjab National Bank (PNB) | Buy | Target price: ₹125 | Stop loss: ₹109

As PSU banking stocks continue to lead the momentum, PNB — which had remained on the sidelines for some time — is now attracting renewed buying interest, said Mishra.

The stock has been consolidating within a broader range above its long-term average, the 200 EMA, and is currently trading near the upper end of this range, suggesting a potential breakout.

"A move above this level would also confirm a breakout from an inverted head and shoulders pattern, indicating a possible revival in upward momentum. Traders may consider taking long positions within the mentioned range," Mishra said.

Aurobindo Pharma | Buy | Target price: ₹1,250 | Stop loss: ₹1,060

Mishra pointed out that the pharma sector has been a notable underperformer, and Aurobindo Pharma had been moving in a downward trajectory in line with the broader trend.

However, the stock has recently shown signs of stability and registered a decisive breakout above its falling trendline, signalling the end of its corrective phase.

In this recovery phase, it has reclaimed its short- to medium-term moving averages and now appears poised to retest its long-term 200 EMA.

The successful retest and rebound from the trend line further validate the onset of a fresh upward leg.

"Considering the favourable technical setup and strong volume support, traders may look to initiate fresh long positions at the specified levels," said Mishra.

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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.