Stocks to buy for short term: M&M, Policybazaar among 6 technical picks analysts recommend for next 2-3 weeks

Stocks to buy for short term: Propelled by gains in the banking and financial heavyweights, Indian stock market benchmarks - the Sensex and the Nifty 50 - closed with gains in the previous session on January 28. The Sensex closed 535 points, or 0.71 per cent, higher at 75,901.41, while the Nifty 50 closed the day at 22,957.25, up 128 points, or 0.56 per cent.

Even though the key indices ended higher, snapping their two-session losing run, experts indicate that the market sentiment is cautious ahead of the US Fed policy outcome on January 29 and the Union Budget on February 1.

On the technical front, Shrikant Chouhan, the head of equity research at Kotak Securities, pointed out that on daily charts, the Nifty 50 formed a long-legged Doji candlestick formation, which suggests indecisiveness between the bulls and the bears.

Chouhan believes 23,000 will act as a trend decider level for the bulls. Above this, the market could retest levels of 23,100 and 23,150. Conversely, below 22,900, selling pressure is likely to accelerate, and the market could slip to 22,800 and 22,775.

As the market sentiment remains cautious, experts recommend buying stocks with strong fundamentals for the long term. For the short term, experts suggest picking stocks with favourable technical indicators. Vishnu Kant Upadhyay of Master Capital Services and Mandar Bhojane of Choice Broking recommend buying the below six stocks for the next 2-3 weeks. Take a look:

Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services

Tata Consumer Products | Previous close: ₹961.25 | Target price: ₹1,065 | Stop loss: ₹940 | Upside potential: 11%

Prices are forming an inverted head and shoulders pattern on the daily chart, signalling a potential trend reversal.

Tata Consumer stock has decisively crossed the 21-day EMA, reinforcing bullish momentum.

The RSI is trending upwards near 65, indicating strong buying interest, while the MACD has crossed above the signal line, further affirming the positive outlook.

"The breakout is supported by increasing volumes, which confirms participation from buyers. If the neckline is sustained, the stock may see a further upward move toward higher resistance zones in the near term," said Upadhyay.

Great Eastern Shipping Company | Previous close: ₹908.90 | Target price: ₹1,012 | Stop loss: ₹889 | Upside potential: 13%

Prices have declined nearly 40 per cent from their all-time high but still managed to trade above a critical demand zone, showcasing strong buyer interest at lower levels.

Great Eastern Shipping Company stock is also trading comfortably above its 34-month EMA and 200-week EMA, two pivotal support levels that have historically held firm during previous corrections.

On the momentum front, the RSI indicates that prices are approaching oversold territory, suggesting a potential reversal is on the horizon.

The MACD exhibits a positive divergence, reinforcing the possibility of a bullish recovery.

PB Fintech (Policybazaar) | Previous close: ₹1,644 | Target price: ₹1,873 | Stop loss: ₹1,548 | Upside potential: 14%

PB Fintech has showcased a promising recovery after briefly breaching its critical support zone, which coincides with the 200-day EMA. This indicates strong resilience at lower levels.

The sharp rebound has been accompanied by increasing volumes, suggesting renewed buying interest.

Technically, the RSI has turned upward from oversold levels, highlighting growing bullish momentum, while the MACD has printed a positive crossover, signalling a potential trend reversal.

Mandar Bhojane, Equity Research Analyst at Choice Broking

Torrent Power | Previous close: ₹1,466.15 | Target price: ₹1,630, ₹1,660 | Stop loss: ₹1,374 | Upside potential: 13%

Torrent Power is consolidating just below a descending trendline. The recent increase in trading volumes signals growing buying interest, indicating the potential for a breakout.

The RSI, currently at 48 and trending upward, suggests improving momentum, which aligns with a bullish outlook.

"A decisive close above ₹1,490 would confirm a breakout, potentially opening the door for a strong upward move toward short-term targets of ₹1,630 and ₹1,660. Key support lies at ₹1,425, offering a low-risk entry point on dips. To manage risk, a stop-loss should be placed at ₹1,374, as a break below this level would invalidate the bullish setup," said Bhojane.

Mahindra & Mahindra (M&M) | Previous close: ₹2,870.60 | Target price: ₹3,135, ₹3,200 | Stop loss: ₹2,700 | Upside potential: 11.5%

M&M is showing signs of a bullish reversal as it has moved above the 200 EMA. The formation of a bullish piercing pattern on the daily chart, accompanied by a surge in trading volumes, further strengthens the positive outlook.

"If the stock sustains a close above ₹2,900, it could trigger a rally towards ₹3,135 and ₹3,200. On the downside, the immediate support at ₹2,800 offers a favourable entry point for investors, while a stop-loss at ₹2,700 is recommended to manage risks," said Bhojane.

Torrent Pharmaceuticals | Previous close: ₹3,314.80 | Target price: ₹3,750, ₹3,800 | Stop loss: ₹3,150 | Upside potential: 15%

Torrent Pharma is showing strong bullish momentum as it approaches a breakout from an inverted head-and-shoulders pattern on the daily chart. The recent price consolidation near the breakout level, combined with a surge in trading volume, reinforces the bullish sentiment.

The RSI, trending upward at 78.8, signals robust buying interest and further supports the case for upward movement.

"A decisive close above ₹3,400 could open the door to short-term targets of ₹3,750 and ₹3,800. On the downside, immediate support at ₹3,250 presents a favourable buying opportunity for investors, with a recommended stop-loss at ₹3,150 to manage risk effectively," Bhojane said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.