Stocks to buy for short term: Reliance, IREDA, IRFC among 9 picks that may rise 8-20% in next 3-4 weeks, say experts | Stock Market News

Stocks to buy for short term: Nifty 50, the frontline index of the Indian stock market, witnessed a healthy gain of 2.3 per cent for the week ended Friday, December 6. With this, the market benchmark extended gains into the third consecutive week.

The market’s undertone appears positive, with the Nifty 50 poised to close the year above 25,000. However, there could be some profit booking as the market has seen healthy gains in the last three weeks.

Amol Athawale, VP of technical research at Kotak Securities, observed that the weekly charts indicate that the Nifty 50 has formed a long, bullish candle and is maintaining a higher bottom formation. It successfully closed above the 50-day simple moving average (SMA).

Athawale believes that the market texture is bullish; however, due to temporary overbought conditions, there could be rangebound activity in the near future.

“The ideal strategy for short-term traders would be to buy on dips and sell on rallies. For traders, key support levels would be 24,500 and 24,300, while resistance is expected to be between 24,900 and 25,050. However, below 24,300, traders may prefer to exit from the long trading positions,” said Athawale.

Experts emphasise that one must be cautious when picking stocks to buy for the short term at this juncture. Based on recommendations by three experts, here are nine stocks that may rise 8-20 per cent in the next three to four weeks. Take a look:

Shiju Koothupalakkal, Technical Research Analyst, PL-CAPITAL – Prabhudas Lilladher Pvt Ltd

Indian Railway Finance Corporation (IRFC) | Previous close: ₹158 | Buying range: ₹155 to ₹162 | Target price: ₹190 | Stop loss: ₹140 | Upside potential: 20%

The stock witnessed a decent gradual correction from ₹230, bottoming out near ₹133. With the second attempt of a significant pullback, it has moved past the important 50EMA (exponential moving average) at ₹151 to improve the bias.

There has been a rise in participation volume in recent times. The RSI has recovered strongly from the oversold zone and is currently on the rise, with strength indicated.

“With the chart technically well-placed, we anticipate a further rise and suggest buying the stock for an upside target of ₹190, keeping the stop loss of ₹140 level,” said Koothupalakkal.

TD Power Systems | Previous close: ₹435.60 | Buying range: ₹ ₹430 to ₹442 | Target price: ₹510 | Stop loss: ₹418 | Upside potential: 17%

The stock has maintained a positive uptrend overall. It indicates bottoming out near the base of the ascending channel pattern visible on the daily chart.

Also, it has maintained above the important 50EMA level of ₹421, with bias improving. The RSI is also indicating a positive trend reversal to signal a buy.

“The rise in volume participation further supports our view, and with the chart technically looking good, with a series of higher bottom formations visible, it is ready for another positive move. I suggest buying the stock for an upside target of ₹510, keeping the stop loss at ₹418 level,” said Koothupalakkal.

Samvardhana Motherson International | Previous close: ₹170.39 | Buying range: ₹165 to ₹175 | Target price: ₹205 | Stop loss: ₹155 | Upside potential: 20%

The stock has witnessed a good correction in the last two months from ₹215, bottoming out and finding a decent consolidation period near the ₹160-165 zone, indicating good support.

It has gradually improved, moving past the important 200-period MA (moving average) at ₹165 to improve the bias. The RSI has picked up well from the oversold zone and is on the rise to indicate strength.

“With the chart technically looking good, we suggest buying the stock for an upside target of ₹205, keeping the stop loss of ₹155 level,” Koothupalakkal said.

Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services Ltd.

Reliance Industries | Previous close: ₹1,311.55 | Buying price: ₹1,310 | Target price: ₹1,398, ₹1,420 | Stop loss: ₹1,245 | Upside potential: 8%

Reliance Industries has witnessed a sign of recovery from its recent corrective phase, with prices reclaiming the 21-day EMA at ₹1,301, supported by improving volumes.

The RSI at 51.47 reflects strengthening momentum without entering the overbought territory, indicating the potential for further upside. Additionally, the MACD shows a bullish crossover, suggesting renewed buying interest.

The upward-sloping trendline from prior lows around ₹1,200 remains intact, reinforcing the bullish structure. “With the recent support zone validation at ₹1,230-1,245, the stock may approach towards ₹1,398 and then ₹1,420,” said Upadhyay.

PCBL | Previous close: ₹469.75 | Buying price: ₹468 | Target price: ₹520 | Stop loss: ₹430 | Upside potential: 11%

PCBL has shown a strong reversal, with prices holding firmly above the 21-day EMA at ₹433, supported by improving momentum.

The RSI is upward at 64.40, indicating robust strength while avoiding overbought levels. Additionally, the MACD has turned positive, reflecting a continuation of bullish momentum.

“In a shorter timeframe, prices have formed an inverse head-and-shoulder pattern, comfortably trading above neckline resistance. Immediate support is placed at 430, making pullbacks an attractive buying opportunity,” said Upadhyay.

EID Parry India | Previous close: ₹907.70 | Buying price: ₹900 | Target price: ₹1,000 | Stop loss: ₹848 | Upside potential: 10%

Prices have witnessed a strong breakout above ₹860 on the weekly chart, supported by robust volumes, indicating sustained buying interest.

The stock is trading well above its 21-week EMA at ₹804, affirming its bullish trend.

The RSI is at 65.37, reflecting strong momentum without reaching overbought conditions. Additionally, the MACD is in a positive crossover, reinforcing the bullish sentiment.

“The breakout suggests a potential for further upside toward ₹1,000 level in the medium term. Immediate support lies near ₹848, making this a favourable setup for trend-following investors,” Upadhyay said.

Mandar Bhojane, Equity Research Analyst, Choice Broking

Indian Renewable Energy Development Agency (IREDA) | Previous close: ₹221.25 | Buying price: ₹221.25 | Target price: ₹250, ₹260 | Stop loss: ₹206 | Upside potential: 18%

IREDA recently broke out of a consolidation range on the daily chart. The successful retest of the breakout level adds to the pattern’s reliability, indicating strong technical strength.

The breakout is accompanied by a significant surge in trading volumes, reflecting heightened buying interest and increasing the likelihood of sustained bullish momentum.

“A close above ₹225 could act as a catalyst, setting the stage for short-term targets of ₹250 and ₹260. On the downside, the immediate support is positioned at ₹214, making it attractive for buying on dips,” said Bhojane.

“To manage risk, a stop-loss at ₹206 is recommended to safeguard against unforeseen market reversals. This setup presents a favourable risk-reward opportunity for traders,” Bhojane said.

Indraprastha Medical Corporation | Previous close: ₹501.45 | Buying price: ₹501.45 | Target price: ₹560, ₹580 | Stop loss: ₹470 | Upside potential: 16%

Indraprastha Medical Corporation has recently witnessed a breakout from a rectangle pattern on the daily chart.

This technical breakout is supported by a substantial increase in trading volumes, indicating robust buying interest and the potential for continued upward momentum.

The Relative Strength Index (RSI) stands at 68.66, trending upward and highlighting strengthening bullish sentiment.

“If the price sustains above the critical level of ₹510, it could pave the way for short-term targets of ₹560 and ₹580. On the downside, immediate support is identified at ₹485, offering a favourable entry point for investors looking to capitalise on potential dips. To manage risk effectively, a stop loss at ₹470 is recommended, ensuring protection against unexpected market reversals,” said Bhojane.

VA Tech Wabag | Previous close: ₹1,905.90 | Buying price: ₹1,911 | Target price: ₹2150, ₹2,200 | Stop loss: ₹1,800 | Upside potential: 15%

VA Tech Wabag has recently broken out of a symmetrical triangle pattern on the daily chart.

The price is consolidating above the breakout level, signalling the potential for continued upward momentum.

This breakout and a notable increase in trading volume indicate strong bullish sentiment.

“A decisive close above ₹1,910 could pave the way for short-term targets of ₹2,150 and ₹2,200. On the downside, immediate support is positioned at ₹1,865, providing a favourable entry point during pullbacks. To manage risk effectively, a stop-loss at ₹1800 is advised to protect against potential market reversals,” 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.