Stocks to buy or sell for short term: Jigar Patel of Anand Rathi shares trading strategies for 3 stocks

Stocks to buy or sell for the short term: The Indian stock market witnessed a significant correction last week, with the benchmark Nifty 50 declining 2% on a weekly scale, driven by geopolitical tensions, rising crude oil prices, persistent foreign capital outflows, weakness of the Indian rupee, elevated US bond yields, and mixed Q1 earnings.

The Nifty retested the 23,600 support during the week, where buying interest emerged.

However, the index may remain range-bound due to prevailing risks emanating from the US-Iran conflict. This week, the monetary policy decision of the US Federal Reserve will also be in focus.

As per Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, 23,900–24,100 remains the immediate hurdle for the index.

"A decisive move above this zone could revive bullish momentum. As long as 23,600–23,650 holds, our preferred strategy remains Buy on Dips with disciplined risk management," said Patel.

"While a brief retest of the recent lows cannot be ruled out, we believe the index is nearing a strong demand zone and fresh short positions should be avoided," Patel added.

For Bank Nifty, Patel said the immediate resistance is placed at 57,200–58,000. A sustained breakout above this zone could trigger a fresh rally towards record highs.

Stock picks for the short term

Jigar Patel shares his short-term trading strategies for the following three stocks:

Adani Enterprises | Sell between ₹3,050 to 3,100 | Target price: ₹2,775 | Stop loss: ₹3,225

Patel pointed out that Adani Enterprises share price has started showing signs of fatigue after failing to sustain above the ₹3,150–3,180 resistance zone, where the Camarilla R4 level is acting as a strong resistance, increasing the likelihood of profit booking.

The recent breakdown below the short-term rising trendline indicates weakening bullish momentum and raises the probability of a deeper corrective move.

The DMI has turned bearish, with the -DI (red) crossing above the +DI (green), while both the -DI and ADX are trading above the 25 level, confirming that bearish momentum is strengthening and sellers are gaining control.

Further, Patel said that the RSI has slipped below the 50 mark, reflecting fading buying strength, while the MACD remains below the signal line with an expanding negative histogram, indicating increasing downside momentum.

"As long as the stock trades below ₹3,225, rallies are likely to witness selling pressure," said Patel.

PI Industries | Buy between ₹2,740 to 2,720 | Target price: ₹3,100 | Stop loss: ₹2,520

As per Patel, PI Industries share price is showing encouraging signs of a bullish reversal after finding strong support near the 0.886 Fibonacci Retracement–1.272 Fibonacci Extension zone, an area that has historically acted as a demand zone.

The stock has formed bullish divergences on the weekly MACD, RSI, and DMI, indicating that bearish momentum is weakening even as prices recently recorded lower lows.

"Such divergences often signal that selling pressure is exhausting and a trend reversal could be developing. Additionally, momentum indicators are beginning to stabilise, suggesting buyers are gradually regaining control," said Patel.

UBL | Buy between ₹1,400 to 1,370 | Target price: ₹1,565 | Stop loss: ₹1,276

Patel underscored United Breweries (UBL) share price is showing signs of a potential reversal after correcting sharply from its recent highs.

The stock is currently trading near a major historical demand zone, which also coincides with the Floor Pivot S1 support, making this an important accumulation area.

Additionally, the weekly MACD, RSI, and DMI are exhibiting bullish divergences, indicating that bearish momentum is fading despite the stock making lower lows.

"These positive divergences suggest that selling pressure is weakening while buyers are gradually returning. The recent price action also reflects a successful defence of the demand zone, increasing the probability of a recovery," said Patel.

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.