Stocks to buy or sell: From Vedanta to Ambuja Cements— Jigar Patel of Anand Rathi shares views on 3 shares

Stocks to buy or sell for short term: Indian stock market benchmark, Nifty 50, opened with mild gains of about 0.21 per cent on Monday, November 24, tracking largely positive global cues.

The Nifty 50 opened at 26,122.80 against its previous close of 26,068.15. In the previous session, the index had suffered a loss of nearly half a per cent, snapping its two-day winning run. However, on a weekly scale, the index extended gains for the second consecutive week, clocking a gain of 0.61 per cent for the week ended November 21. It hit a 52-week high of 26,246.65 last week.

From a technical perspective, Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that the Nifty 50 has validated a significant long-term cup-and-handle breakout, suggesting a robust bullish structure that could unfold more meaningfully in the months ahead—potentially materialising through the first half of 2026.

In the near term, a move above 26,300 may trigger a further rise toward the 26,500 level. However, this upmove could represent the final leg of the current rally, as a short-term corrective phase appears likely thereafter. Traders should remain cautious of this possibility, said Patel.

Meanwhile, the continued underperformance of the Midcap and Smallcap indices remains a concern, and sustained improvement in these segments will be crucial for the broader market's strength.

Patel said on the downside, Nifty’s immediate support sits at 25,700, and a breakdown below this level may temporarily pause the index’s march toward new lifetime highs.

Stock picks for the short term

Jigar Patel recommends buying and selling the following three stocks for the next one to two weeks:

Vedanta | Sell in the ₹495–505 range | Target price: ₹465 | Stop loss: ₹521

Patel pointed out that Vedanta is showing signs of weakening momentum as negative bearish divergence appears on the RSI near the December 2024 highs, as illustrated in the chart.

This divergence suggests that upward price movements are not being supported by underlying strength.

Adding to the cautious outlook, a noticeable trendline breakdown has occurred, signalling a potential shift in the stock’s medium-term structure.

"These technical developments collectively point toward rising downside risk. In this context, Vedanta is viewed as a sell-on-rise candidate," said Patel.

"A selling strategy is suggested in the ₹495–505 range, with a possible decline toward the ₹465 level. To safeguard positions, a strict stop loss at ₹521 on a daily closing basis is advised," Patel said.

Ambuja Cements | Sell in the ₹547–555 range | Target price: ₹510 | Stop loss: ₹571

According to Patel, Ambuja Cements has recorded a negative breakdown after consolidating in a tight ₹550–568 range, with the stock now hovering around ₹547.55.

The technical structure has weakened as the price trades below both the 200-day simple and exponential moving averages, indicating persistent selling pressure.

Momentum indicators further highlight the bearish sentiment. The RSI remains below the 50 level, reflecting subdued strength, while the MACD has registered a negative crossover beneath the zero line, signalling continued downside momentum.

"Based on these indicators, we suggest a selling approach in the ₹547–555 range. The stock is expected to drift toward the ₹510 level, while a daily closing stop loss is advised at ₹571 to manage risk effectively," Patel said.

Birlasoft | Buy in the 385–365 range | Target price: ₹460 | Stop loss: ₹330

Patel highlighted that Birlasoft is approaching a significant historical juncture, with the weekly chart showing a prominent double-bottom formation near the 61.8% Fibonacci retracement of its rally from the March 2020 Covid lows to the January 2024 peak.

This crucial technical zone is further supported by bullish divergences on both the RSI and MACD indicators, pointing to a potential shift in momentum. These combined signals indicate strengthening prospects at lower levels.

"A staggered buying approach is recommended in the ₹385–365 range, with an expected upside target of ₹460 if the reversal materialises. A strict stop loss at ₹330 on a daily closing basis is advised to manage downside risk effectively," said Patel.

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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.