Stocks to buy for short term: From SBI to Cipla— Ajit Mishra of Religare Broking recommends THESE 3 shares

Stocks to buy for short term: The Indian stock market ended with modest gains on Thursday, with benchmarks, the Sensex and the Nifty 50, rising for the third consecutive session after the US Federal Reserve cut interest rates by 25 basis points and gave subtle hints that there could be two more rate cuts this year.

The Nifty 50 ended at 25,423.60 and is inching closer to the crucial 25,500 level. Ajit Mishra, SVP of research at Religare Broking, highlighted that the market could see some profit-taking or consolidation as the Nifty is on the verge of testing the target level of 25,500.

However, he finds support for the index in the 25,150-25,250 zone and believes favourable sentiment across the key sectors would keep the tone positive.

"We recommend focusing more on stock-specific opportunity now, preferring stocks where risk to reward is favourable," 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 the short term

State Bank of India (SBI) | Last traded price (LTP): ₹854.35 | Buy | Target price: ₹920 | Stop loss: ₹825

Mishra pointed out that SBI has finally broken out of a tight consolidation phase after nearly five months, marking a strong shift in momentum within the PSU banking pack.

The breakout is validated by a noticeable rise in volumes, signalling fresh buying.

The stock has also pierced through its falling trend line resistance, resuming the broader uptrend that had paused after its previous record high.

All key moving averages are now aligned in a bullish formation, providing a strong cushion on declines.

"Given the favourable price-volume setup, SBI looks poised to retest its all-time high, with scope to extend toward ₹920. On the downside, ₹830– ₹825 forms a critical support base, offering an attractive risk-reward setup for positional longs," said Mishra.

Cipla | LTP: ₹1,578.20 | Buy | Target price: ₹1,690 | Stop loss: ₹1,520

Mishra underscored that Cipla is consolidating after a robust multi-month uptrend and has carved a broad rectangle pattern between the ₹1,380–1,560 zone.

The recent rebound from the lower band of this consolidation, coupled with sustained closes above the 20-day EMA, signals renewed buying interest.

The long-term averages (50/100/200 EMA) continue to trend higher, indicating underlying strength in the broader structure.

The breakout attempt above ₹1,600 was supported by healthy volume action, highlighting buyers’ participation.

Momentum oscillators, including RSI, have turned upward from neutral territory, reinforcing the bullish bias.

"A decisive close above ₹1,620 could unlock the next up move toward ₹1,690– ₹1,720. On the downside, ₹1,550– ₹1,520 serves as a strong support zone, with a close below ₹1,520 negating the bullish outlook," said Mishra.

Ashok Leyland | LTP: ₹138.76 | Buy | Target price: ₹152 | Stop loss: ₹132

Within the rate-sensitive pack, auto has done exceptionally well in the recent weeks, and Ashok Leyland continues to display strong relative strength within the space.

"The stock recently staged a successful rebound from its breakout neckline near ₹132, validating this zone as a strong demand base," Mishra observed.

The emergence of a base-on-base formation reflects accumulation, with higher lows and volume-backed advances confirming constructive price action.

The stock is trading comfortably above all key moving averages (20/100/200 EMA), aligned in a bullish sequence, which underlines the positive trend setup.

RSI on daily and weekly charts remains firmly in the bullish zone, suggesting further upside potential.

"In short, all the indicators are pointing towards a steady rise ahead," Mishra said.

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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.