Stocks to buy for the short term: The domestic market eked out modest gains on Wednesday amid rising tensions between the US and Iran and elevated crude oil prices.
The Sensex gained 130 points, or 0.17%, to close at 77,185.43, while the Nifty 50 settled at 24,078.50, rising 26 points, or 0.11%.
As per experts, a Doji candle on the daily charts and non-directional movement on intraday charts signal indecision between bulls and bears.
According to Amol Athawale, VP - Technical Research at Kotak Securities, 24,200 will serve as the key resistance, while 24,000 remains a crucial support.
Above 24,200, the market may rally towards 24,300-24,350, while a break below 24,000 could trigger fresh selling pressure, Athawale added.
Athawale believes if 24,000 is breached, the market may retest the 50-day SMA (simple moving average), near 23,800-23,750.
Stock picks for the short term
Amol Athawale recommends buying the following three stocks for the next 1-2 weeks:
Swiggy | Previous close: ₹270.09 | Target price: ₹290 | Stop loss: ₹260
Athawale pointed out that Swiggy's share price is gaining further traction for a fresh up move after its incredible up move and a breather of the last few sessions.
The structure of the chart formation indicates a bullish continuation pattern, which is likely to persist in the near term.
"For the next few trading sessions, ₹260 could be the trend decider level for the bulls. If it sustains above the same, we can expect further uptrend towards ₹290," said Athawale.
PB Fintech (Policybazaar) | Previous close: ₹1,610.80 | Target price: ₹1,730 | Stop loss: ₹1,555
Athawale highlighted that on the daily timeframe, after undergoing a correction from higher levels, PB Fintech share price had been trading in a range-bound mode.
Recently, it witnessed a range breakout supported by decent volumes, indicating renewed buying interest.
Additionally, the RSI indicator is pointing towards strengthening momentum, suggesting the potential for further upside from the current levels.
The breakout above the resistance zone signals the possibility of continued bullish momentum in the coming sessions.
"For the traders, ₹1,555 would be the key support level to watch out. Above which the uptrend structure could continue towards ₹1,730," said Athawale.
Bank of India | Previous close: ₹145.21 | Target price: ₹155 | Stop loss: ₹139
As per Athawale, Bank of India share price has formed an inverse head and shoulder chart pattern on the daily chart, and it is trading near the neckline resistance zone.
Additionally, the rising volume activity and structure of the stock are indicating a fresh leg of upward momentum from current levels in the coming horizon.
"For positional traders, ₹139 would be the decisive level. Trading above the same uptrend formation will continue till ₹155. However, if it closes below ₹139, traders may prefer to exit from trading long positions," said Athawale.
Read all market-related news here
Read more stories by Nishant Kumar
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.
