Top stocks to buy for the short term: The Indian stock market ended in the red for the third consecutive session on Wednesday, 1 October, as rising bond yields and elevated oil prices kept investors worried.
The Nifty 50 ended at 22,620, ending the month of September nearly 6% lower and extending losses for the second consecutive month.
On the daily chart, the index formed a bearish candle, while the intraday charts continue to indicate a lower-top formation, keeping the near-term setup negative.
Amol Athawale, VP - Technical Research at Kotak Securities, believes 22,600–22,550 remains a crucial support zone for day traders.
"If the market sustains above this zone, it could rebound towards 22,750–22,800. Conversely, a decisive break below 22,550 could intensify selling pressure, potentially pulling the market down towards 22,400–22,350," said Athawale.
"The intraday market outlook remains non-directional; hence, level-based trading would be the preferred strategy for day traders," Athawale said.
Stock picks for short term:
Tata Consultancy Services (TCS) | Previous close: ₹2,050.60 | Target price: ₹2,200 | Stop loss: ₹1,980
Athawale underscored that on a broader time frame, TCS stock had been in a prolonged downtrend. Therefore, it is currently in an oversold territory.
The texture of the chart formation and technical indicator RSI is indicating that the stock is very likely to rebound for a new leg of the up move from its lower levels.
"For positional traders, ₹1,980 would be the decisive level. Trading above the same formation will continue till ₹2,200. However, if it closes below ₹1,980, traders may prefer to exit from trading long positions," said Athawale.
Axis Bank | Previous close: ₹1,226 | Target price: ₹1,310 | Stop loss: ₹1,180
Athawale said after its downward trend, Axis Bank stock has entered into an accumulation phase, moving within a defined range on the daily chart.
Recent bullish activity suggests improving strength and rising buying interest. A breakout from the range appears likely in the near term, offering a favourable risk-reward opportunity from current levels.
"As long as the stock holds above ₹1,180 support, the reversal trend is likely to persist, with the possibility of the price advancing toward the ₹1,310 level in the coming horizon," said Athawale.
Lodha Developers | Previous close: ₹1,135 | Target price: ₹1,200 | Stop loss: ₹1,080
Athawale underscored that on the daily and intraday charts, after the recent up move of the last few sessions, Lodha Developers witnessed a short-term correction.
However, the stock found support at the retracement zone and rebounded, showing a steady recovery from its recent lows.
The formation suggests a revival of the uptrend from the current levels.
"For the traders, ₹1,080 would be the key support level to watch out. Above which the uptrend structure could continue towards ₹1,200," said Athawale.
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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.
