Stocks to buy for short term: From Paytm to Cipla — experts recommend THESE 5 technical picks for the next 2-3 weeks

Mint

6 days ago

Stocks to buy for the short term: The Indian stock market has been on a losing streak for the last three consecutive sessions, fueled by heavy foreign capital outflow, a delayed India-US trade deal, and weak Q1 earnings.
The Sensex has crashed 1,836 points, or 2.2 per cent, while the Nifty 50 has fallen 2.1 per cent in the last three sessions. Investors have lost over ₹ 12 lakh crore in this period.
On Monday, July 28, the Sensex closed 572 points, or 0.70 per cent, lower at 80,891.02, while the Nifty 50 settled at 24,680.90, suffering a loss of 156 points, or 0.63 per cent.
Experts believe the market may remain weak in the near term.
"The RSI continues to support the bears with its negative crossover. In the short term, the index may remain under pressure, with a possibility of slipping towards 24,550. On the higher end, resistance is seen at 24,800 and 24,950," said Rupak De, Senior Technical Analyst at LKP Securities.
While the market sentiment appears fragile, experts see stock-specific opportunities across segments.
Mandar Bhojane of Choice Broking and Vishnu Kant Upadhyay of Master Capital Services suggested five stocks to buy for the next two to three weeks. Take a look:
Paytm has recently completed a breakout from a classic cup and handle pattern on the daily timeframe.
Following this technical move, the stock is holding steady above its breakout point and gearing up for another potential rally.
The increased trading volume accompanying this phase points to strong buying interest in the stock.
"If Paytm can secure a close above ₹ 1,100, it may set its sights on reaching the immediate targets of ₹ 1,210 and ₹ 1,240. For prudent risk management, setting a stop-loss at ₹ 1,030 is advised, helping to cushion against any unexpected decline in price," said Bhojane.
Garuda has recently broken out of a rounding bottom pattern, showing consolidation above the breakout level and is now on the verge of a fresh breakout.
This move has been accompanied by a significant increase in trading volume, which signals strong bullish momentum.
"If the price closes above the ₹ 185 level, it could potentially reach short-term targets of ₹ 210 and ₹ 220. To manage risk prudently, it is recommended to set a stop-loss at ₹ 170 to safeguard your investment against a possible market reversal," Bhojane said.
Cipla has recently broken out of a symmetrical triangle pattern on the daily chart, accompanied by a notable increase in trading volume, which suggests strengthening bullish momentum.
"If the price manages to sustain itself above the key resistance level of ₹ 1,580, the stock could aim for short-term targets of ₹ 1,700 and ₹ 1,750," said Bhojane.
"The rising volume adds conviction to this breakout, indicating strong buying interest. However, to prudently manage risk, it is advisable to set a stop-loss at ₹ 1,510 to protect your investment from any unexpected market reversal or downturn," Bhojane said.
Cipla has broken out of a prolonged consolidation phase with a strong bullish candle backed by rising volume, signalling aggressive buying.
The stock is forming a series of higher highs and higher lows, confirming a sustained uptrend.
It is trading above all key moving averages, reinforcing positive momentum. RSI is rising, indicating strength, and MACD has given a fresh bullish crossover.
"The overall structure suggests strong momentum and continued buying interest," said Upadhyay.
Supreme Industries broke out above a key resistance zone, signalling the start of a bullish phase.
Following the breakout, it retested this zone, now acting as support, by forming a textbook double bottom pattern, reinforcing the strength of the level.
The stock has resumed its uptrend, forming higher highs and lower lows. Price remains above all key EMAs, and volume expansion supports the breakout.
RSI is holding above 60, and MACD has given a fresh bullish crossover, indicating sustained upside momentum.
Navin Fluorine has broken out above a long-term resistance near ₹ 4,890-4,950 zone and is currently consolidating in a narrow range, indicating healthy digestion of gains and setting the stage for a potential further rally.
The formation of higher highs and higher lows reflects a sustained uptrend. Price remains above all major EMAs.
Rising volume during up moves, coupled with an RSI above 65 and a bullish MACD crossover, reinforces positive momentum and the structure's underlying strength.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, 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.