Stocks to buy for short term: Jigar Patel of Anand Rathi suggests 3 stock picks; do you own any? | Stock Market News

Stocks to buy for the short term: Despite losses in the last two consecutive sessions, the Indian stock market extended its gains for a second consecutive week, supported by easing trade war tensions, healthy foreign capital inflows, and largely stable March quarter (Q4) earnings.

The Nifty 50 increased about 1 per cent last week, thus rising about 2 per cent in April after a 6 per cent rise in March.

“Global equities continued to witness a relief rally on expectations of a ramp-down of US tariffs. FII buying was positive this week, supporting Indian equities. In the near to medium term, stocks will continue to react to Q4FY25 results, management commentary, geopolitical events and development concerning the tariff war. Lower oil prices, expected normal monsoon and rate cuts are positives for the Indian equity markets,” said Shrikant Chouhan, the head of equity research at Kotak Securities.

While the market sentiment appears largely positive, experts suggest investors should avoid aggressive bets and focus on quality stocks only. Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends buying shares of Hindustan Unilever, Sonata Software and Birlasoft for the next two to three weeks.

Stock picks for the short term

Hindustan Unilever | Previous close: ₹2,332.20 | Target price: ₹2,550 | Stop loss: ₹2,195

Hindustan Unilever (HUL) recently pulled back after breaking out above ₹2,300 levels and is currently trading near ₹2,330.

In the previous session, it briefly tested ₹2,300 following its result announcement. However, the overall chart structure remains positive, as the two times target from the prior consolidation zone is still pending.

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“We recommend a ‘buy on dips’ strategy within the ₹2,300–2,330 zone. The upside target is set at ₹2,550, while the stop loss should be maintained at ₹2,195 on a daily closing basis to manage risk effectively and protect capital. The technical setup continues to favour bullish momentum,” said Patel.

Sonata Software | Previous close: ₹337.90 | Target price: ₹420 | Stop loss: ₹285

At the current juncture, Sonata Software is trading near a key Fibonacci retracement cluster, with 0.886 per cent from May 2022 low, 0.707 per cent from March 2020 low, and 0.618 per cent from October 2001 low converging around ₹291–330. On the weekly chart, a bullish divergence is observed, suggesting a potential upside.

“We recommend going long between ₹340–320 levels, targeting ₹420, with a stop loss at ₹285 on a daily closing basis. The confluence of major retracements and positive momentum signals strengthens the bullish outlook at these levels. Risk management remains crucial with the defined stop-loss,” Patel said.

Birlasoft | Previous close: ₹386.05 | Target price: ₹485 | Stop loss: ₹330

Birlasoft shows signs of a 427-day cycle, which aligns with Gann’s Square of 144 (144 × 3 ≈ 427), indicating a potential time-based reversal. Currently, the stock is near a major support at ₹330, coinciding with the previous breakout zone from May 2023.

This price-time confluence, combined with a hidden bullish divergence on the weekly RSI, strengthens the case for a possible bottom formation.

“We recommend a long position in the ₹380– ₹390 zone, with a target of ₹485. A daily close below ₹330 should be treated as a stop-loss, marking this as a high-probability swing setup,” 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.