Stocks to buy for short term: Jigar Patel of Anand Rathi recommends 3 technical picks for 2-3 weeks; do you own any?

Stocks to buy for the short term: Despite heightened uncertainty stemming from US President Donald Trump's tariff policies, the Indian stock market exhibited remarkable gains last month on comfortable valuations, an improving outlook for economic growth, expectations of rate cuts, and the return of foreign institutional investors (FIIs) to the Indian market.

Benchmark Nifty 50 rose 6.30 per cent in March, snapping its five-month losing streak. Stocks such as Bharat Electronics (BEL), Power Grid, NTPC, Kotak Mahindra Bank, and UltraTech Cement jumped 14-22 per cent for the month.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that the recent market pullback appears to be a natural cool-off after Nifty’s swift 2,000-point rally.

A negative RSI divergence on the hourly chart near 23,800 signalled this correction. However, Patel underscored what stands out is the index’s resilience—despite selling pressure, every dip is being bought into, marking a shift from the past five months' trend.

The oversold condition of the Nifty 500, the FIIs' lowest long-short ratio, and other factors suggest continued strength.

The Nifty 50 is now at 23,500. Experts expect the market to remain volatile due to the US reciprocal tariff announcement on April 2.

"Volatility is expected due to the US tariff announcement on April 2. If selling pressure intensifies, the Nifty 50 may dip toward 23,400–23,200, offering a buying opportunity. The 23,000 level remains a key support, while resistance lies at 23,850, with a potential move toward 24,100–24,200," said Patel.

Stock picks for short-term

While the market is expected to remain volatile in the near term, Jigar Patel recommends buying shares of LIC, Nykaa and Finolex Cables for the next two to three weeks.

Life Insurance Corporation Of India (LIC) | Previous close: ₹799.40 | Target price: ₹880 | Stop loss: ₹760 | Upside potential: 10%

Recently, LIC formed an inverse head and shoulders pattern and successfully broke above the neckline.

It is currently positioned above the R3 monthly Camarilla pivot, showing sustained strength above this level.

Additionally, a bullish engulfing pattern was observed on March 27, reinforcing the bullish sentiment.

The RSI has also formed an inverse Head and Shoulders pattern on the indicator front, mirroring the price action and further confirming the bullish bias.

"We advise traders to go long in the ₹790-800 zone, targeting an upside of ₹880, with a stop loss placed below ₹760 on a daily closing basis," said Patel.

FSN E-Commerce Ventures (Nykaa) Previous close: ₹179.08 | Target price: ₹195 | Stop loss: ₹168 | Upside potential: 9%

Nykaa stock recently consolidated in the ₹163-168 zone, aligning with the R3 camarilla monthly pivot, indicating strong bullish momentum.

Additionally, the RSI confirms a bullish divergence and a falling trendline breakout in the price action, further supporting the bullish outlook.

The combination of technical signals reinforces the likelihood of an upward move, making it an attractive opportunity for traders.

"We recommend initiating long positions in the ₹176-179 zone, with an upside target of ₹195. A stop loss should be placed below ₹168 on a daily closing basis to manage risk," said Patel.

Finolex Cables | Previous close: ₹913.35 | Target price: ₹1,015 | Stop loss: ₹860 | Upside potential: 11%

Finolex Cables recently exhibited a bullish divergence, resulting in a 100-point surge from the bottom. After a brief pullback, it is currently trading around ₹913.

Notably, it has sustained above the R3 monthly Camarilla pivot over the last three trading sessions, signalling potential bullish momentum in the coming sessions.

The 15-minute intraday chart has also broken out from the R3 Camarilla daily pivot. Additionally, it has supported the 200 EMA high-low band, as seen in the chart, further strengthening our bullish outlook.

"We advise traders to buy within the ₹910-915 zone, targeting ₹1,015 on the upside, with a stop loss below ₹860 on a daily closing basis," said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.