Stocks to buy for the short term: The Nifty 50 index gained for the second week due to GST reform optimism and an S&P credit rating upgrade. Jigar Patel recommends buying three shares, including Concor and Cipla, for short-term gains, with specific target prices and stop-loss levels provided.
Stocks to buy for the short term: Indian stock market benchmark Nifty 50 extended gains for the second consecutive week for the week ended August 22, largely driven by optimism over a proposed GST reform and S&P upgrade of India's credit rating.
The index, however, failed to sustain above the crucial 25,000 level as investors booked profits amid concerns over Trump's tariffs and the fresh escalation of tensions between Russia and Ukraine. On Friday, August 22, the index settled at 24,870, down 214 points, or 0.85 per cent.
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that the Nifty staged a relief rally above 24,600, but faced stiff resistance at 25,150, a zone aligning with the 61.8 per cent Fibonacci retracement of the recent decline from 25,600 to 24,300.
"The reversal on Friday confirmed a bearish engulfing candle on the daily chart and a bearish formation on the weekly scale. Unless the index surpasses 25,200–25,300, volatility may persist. On the downside, a breach of 24,800 could extend the correction towards 24,600, filling Monday's gap," said Patel.
Stock picks for the short-term
Jigar Patel recommends buying shares of Concor, Cipla, and Apollo Tyres for the next two to three weeks.
Concor | Previous close: ₹547.90 | Target price: ₹600 | Stop loss: ₹515
Container Corporation of India (Concor) has recently exhibited a promising technical setup, indicating potential upside momentum.
The stock has formed a bullish BAT pattern near the critical support zone of ₹525–535, a level further strengthened by long-term trendline support and the S3 Camarilla yearly pivot. This makes it a key demand zone for traders.
Reinforcing this bullish view, a hammer candlestick formation has appeared around the mentioned support, accompanied by a surge in trading volumes, signalling possible accumulation.
Moreover, the Parabolic SAR indicator has also penetrated on the upside, lending additional confirmation to the reversal prospects.
"With this confluence of bullish technical factors, the probability of an upward move from current levels appears strong. Traders are advised to initiate fresh long positions in the ₹540–550 range, eyeing an upside target of ₹600, while placing a strict stop loss at ₹515 on a daily closing basis," said Patel.
Cipla | Previous close: ₹1,592.80 | Target price: ₹1,685 | Stop loss: ₹1,525
Cipla has been consolidating in a broad range of ₹1,450–1,565 over the past few weeks, establishing a strong base above the 50-period EMA on the weekly chart.
This consolidation phase has provided stability, setting the stage for a potential breakout. Recently, the stock breached a bearish trendline on the daily chart, supported by reasonable volumes, adding weight to the bullish outlook.
On the momentum front, the weekly RSI oscillated between the 40–55 zone during the consolidation, reflecting healthy accumulation and limited downside pressure.
The breakout, coupled with improving volumes and momentum indicators, points towards further upside potential in the near term.
"Traders are advised to initiate long positions in the ₹1,550–1,600 range, with an expected target of ₹1,685. A stop loss should be maintained below ₹1,525 on a daily closing basis to manage risk effectively," said Patel.
Apollo Tyres | Previous close: ₹465.75 | Target price: ₹505 | Stop loss: ₹440
Apollo Tyres has displayed encouraging technical signals, suggesting the possibility of further upside.
On the daily chart, the stock is forming a strong base above the 100- and 200-day exponential moving averages (DEMA), indicating sustained support at lower levels.
On the weekly scale, a key trendline breakout has also been confirmed, strengthening the bullish view.
In the past month, the stock's pullback was accompanied by thin volumes, a sign of waning selling pressure.
The recent reversal from the ₹430 mark has positioned the stock comfortably above this support. Further, the weekly RSI has rebounded from the 40 zone, pointing to a shift in momentum toward the buyers' side.
"With these technical cues aligning, traders are advised to initiate long positions in the ₹460–466 range, targeting an upside towards ₹505, while keeping a strict stop loss at ₹440 on a daily closing basis to manage downside risk," said Patel.