Stocks to buy for short term: SBI, PolicyBazaar among 6 stocks that may rise 7-18% in 3-4 weeks, say analysts

Stocks to buy for the short term: The Indian stock market benchmark Nifty 50 looks set to end the calendar year 2024 with decent gains of about 9 per cent. The last three months have been challenging for the Indian stock market due to heavy foreign capital outflow, weak quarterly earnings, growing uncertainty about the US Fed's interest rate path, and Donald Trump's trade policies.

Experts expect the market to witness high volatility in the short term. While they say the key indices may remain wobbly, they see stock-specific opportunities.

Vishnu Kant Upadhyay of Master Capital Services and Hardik Matalia of Choice Broking recommend buying the below six stocks for the next 3-4 weeks. They underscore these stocks look attractive on technical charts and may potentially give returns in the range of 7-18% in the short term. Take a look:

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

State Bank of India (SBI) | Previous close: ₹788.30 | Target price: ₹860 | Stop loss: ₹768 | Upside potential: 9%

SBI trades within a symmetrical pattern on the weekly chart, with the prior bullish trend favouring an upward breakout.

Currently, prices are near the lower range, supported by the 50-week EMA—a critical level that has consistently attracted strong buying interest.

The RSI stands at 47, suggesting ample room for an upside move, while the MACD indicator remains positive, reinforcing bullish sentiment.

"This technical setup highlights the potential for a northward journey, with the 50-week EMA acting as a solid base for the stock’s next leg higher," said Upadhyay.

Aditya Birla Sun Life AMC | Previous close: ₹837.80 | Target price: ₹893 | Stop loss: ₹765 | Upside potential: 7%

Aditya Birla Sun Life AMC is trading with a strong bullish momentum, supported by its recent price action.

The stock has rebounded from a crucial horizontal support zone near ₹780, aligning with its 100-day EMA, a strong dynamic support. This bounce is accompanied by a rise in price, signalling renewed buying interest.

The RSI is recovering from the oversold region, indicating a potential uptrend revival, while the MACD histogram shows signs of positive momentum.

"If the stock sustains above the ₹780-770 price zone, it could challenge previous highs around ₹893 and ₹910," Upadhyay said.

Caplin Point Laboratories | Previous close: ₹2,538.10 | Target price: ₹2976, ₹3,000 | Stop loss: ₹2,400 | Upside potential: 18%

Caplin Point Laboratories has exhibited a strong bullish breakout, surging nearly 9 per cent last Friday with significant volumes, signalling robust buying interest.

The stock has decisively breached previous resistance levels, forming a fresh high at ₹2,641.

This rally is supported by its position above the 21-day EMA, which continues to act as dynamic support, indicating sustained upward momentum.

The RSI has entered the overbought zone at 72, confirming strong bullish momentum, while the MACD histogram shows a positive crossover, reinforcing the uptrend.

Hardik Matalia, Derivative Analyst, Choice Broking

IPCA Laboratories | Previous close: ₹1,662.95 | Target price: ₹1,850, ₹1,875 | Stop loss: ₹1,570 | Upside potential: 13%

IPCA Laboratories has recently experienced a throwback towards a demand zone, consolidating within a defined range. 

The stock is showing signs of a potential breakout from this consolidation phase. 

The RSI, at 65.30 and trending upwards, indicates strengthening bullish momentum. 

Additionally, it has rebounded from key support zones and has surpassed its short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, signalling a positive trend. 

"If the stock delivers a sustainable breakout above ₹1700, it is well-positioned for an upward move toward the ₹1850– ₹1875 range, offering a favourable risk-to-reward opportunity for bullish traders," said Matalia.

PB Fintech (PolicyBazaar) | Previous close: ₹2,107.85 | Target price: ₹2,325, ₹2,350 | Stop loss: ₹2,000 | Upside potential: 11.5%

PolicyBazaar is in a long-term uptrend, forming higher highs and higher lows over the past few months. 

The stock is developing a flag and pole pattern on the daily chart and is on the verge of a potential breakout. 

The RSI, at 61.37, indicates a reversal to the upside, signalling renewed bullish momentum. 

Additionally, it has rebounded from its 20-day EMA and is trading above all its key moving averages, reinforcing its strong trend. 

"If the stock breaks out and sustains above ₹2,155, it will likely gain further traction, targeting the ₹2,325– ₹2,350 range. This technical setup highlights a positive outlook, contingent on the breakout confirmation," Matalia said.

Blue Star | Previous close: ₹2,130.35 | Target price: ₹2,380, ₹2,420 | Stop loss: ₹2,005 | Upside potential: 14%

Blue Star is on the verge of breaking out from a consolidation range, forming a bullish cup and handle pattern. 

The stock remains in a long-term uptrend, and a notable increase in trading volumes backs this potential breakout. 

The RSI, at 62.16 with a positive crossover, signals strengthening bullish momentum. 

Additionally, the stock is trading above its key moving averages across short-term (20-day), medium-term (50-day), and long-term (200-day) EMA’s, underscoring its strong trend. 

"If the stock sustains above ₹2,175, it is poised for an upward move toward the ₹2,380– ₹2,420 range. This technical setup indicates a promising opportunity for bullish continuation, provided it maintains its momentum above the breakout level," said Matalia.

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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.