Stocks to buy in the short term: The Sensex and Nifty 50 fell for the third consecutive session on Monday, May 11, as hopes of possible US-Iran talks weakened, crude oil prices soared and the rupee fell to record lows. Prime Minister Narendra Modi’s call for austerity also influenced sentiment.
The Nifty 50 plunged 1.50% to close the day at 23,815.85. On Tuesday, the index may fall further amid weak global cues.
Experts believe that if the index falls below 23,800, it may fall to 23,500 or even lower.
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Experts recommend several stocks for short-term investments. Vishnu Kant Upadhyay suggests Emcure Pharmaceuticals (target ₹ 1820- ₹ 1860), Coal India (target ₹ 495- ₹ 510) and Zydus Lifesciences (target ₹ 1020- ₹ 1040). Hitesh Tailor recommends Torrent Pharmaceuticals (target ₹4,900), Welspun Corp (target ₹1,450) and Sharda Cropchem (target ₹1,270).
Recommendations are based on strong bullish setups, decisive breaks from consolidation zones and sustained uptrends. Indicators such as EMA (21, 50, 100, 200), bullish engulfing candles, positive RSI readings, and higher high-low formations are cited as supporting technical factors.
The Nifty 50 has seen a decline for three consecutive sessions on weakened hopes of US-Iran talks, rising crude oil prices and falling rupee. Experts suggest that if the index falls below 23,800, it may fall further to 23,500 or lower, indicating a cautious sentiment in the market.
Coal India is characterized by its strong structural uptrend, with healthy pullbacks towards EMA levels and constructive volume behavior. Torrent Pharmaceuticals is showing strong bullish momentum after surpassing its previous all-time high, with strong bullish candles on the daily chart and a positive weekly structure.
For short term investments, Emcure Pharmaceuticals is suggested at ₹ 1678 with targets of ₹ 1820- ₹ 1860 and a stop loss of ₹ 1580. Coal India is recommended at ₹ 464.45 with targets of ₹ 495- ₹ 510 and a stop loss of ₹ 440. Zydus Lifesciences is suggested at ₹956.95 with targets of ₹1020-₹1040 and a stop loss of ₹910.
Experts say this is the time to bet on stocks with strong fundamentals and favorable technical indicators right now.
Vishnu Kant Upadhyay of Master Capital Services and Hitesh Tailor of Choice Broking recommend buying the following six stocks over the next 1-2 weeks.
Short-term stock selection
Expert: Vishnu Kant Upadhyay, Assistant Vice President of Research at Master Capital Services
Emcure Pharmaceuticals | Previous closing: $1,678 | Target prices: $1820 and $1,860 | Stop losses: $1,580
According to Upadhyay, Emcure Pharmaceuticals continues to show a strong bullish setup despite the recent pullback from its record zone.
After achieving a decisive breakout of the all-time high, the stock has entered a controlled pullback phase and is currently gaining support near the 21 EMA, indicating a healthy mean reversion within an ongoing uptrend.
Momentum indicators have also normalized, with the RSI cooling towards the 50 mark, reducing the possibility of overheating in the short term.
The broader price structure remains constructive as the stock continues to maintain a sequence of higher highs and higher lows.
“The lower participation during the decline further suggests a lack of aggressive distribution, keeping the medium-term trend firmly biased to the upside,” Upadhyay said.
Coal India | Previous closing: $464.45 | Target prices: $495 and $510 | Stop losses: $440
According to Upadhyay, Coal India is witnessing a structurally strong bullish trend, which aligns well with the classic Dow Theory features of higher highs and higher lows.
The stock has witnessed healthy pullbacks towards the 21 and 50 EMA levels, indicating sustained buying interest on dips rather than weakness.
Volume behavior also remains constructive, with stronger participation during breakout phases and relatively moderate volumes during pullbacks, reflecting limited selling pressure.
“Recently, the stock formed a bullish engulfing candle near the 21 EMA support zone, suggesting renewed momentum and higher probability of continuation of the prevailing uptrend,” Upadhyay said.
Zydus Life Sciences | Previous closing: $956.95 | Target prices: $1,020 and $1,040 | Stop losses: $910
Upadhyay said Zydus Lifesciences has achieved a strong multi-month breakout, supported by a bullish candlestick formation with a long lower wick, highlighting aggressive buying interest at lower levels.
Previously, the stock had formed a positive RSI divergence near the 850 zone, indicating a weakening of the bearish momentum and setting the stage for the current reversal.
With the breakout, the price also regained all of its key moving averages, while the crossing of the 21 EMA above the 55 EMA reflects improving short-term momentum.
“The overall structure now points towards strengthening bullish traction and a possible bullish move in the near term,” Upadhyay said.
Expert: Hitesh Tailor, Technical Research Analyst at Choice Broking
Torrente Pharmaceuticals | Previous closing: $4,517.10 | Target price: $4,900 | Stop losses: $4,300
Tailor said Torrent Pharmaceuticals is showing strong bullish momentum after surpassing its previous all-time high of $4,482.90 and staying above the breakout zone.
The stock forms strong bullish candles on the daily chart, indicating the continuation of the uptrend. The weekly structure remains positive with clear formation of higher highs and higher lows, Tailor noted.
“The technical setup favors buying at the current market price with a strict stop loss at $4,300, while upside potential remains open towards $4,900 with adequate risk management”, Sastre.
Welspun Corp | Previous closing: $1,329.30 | Target price: $1,450 | Stop losses: $1,260
Tailor noted that Welspun Corp is experiencing strong bullish momentum, supported by a strong bullish move followed by a breakout formation.
The stock recently consolidated in a lower time range and has now made a decisive breakout with a close above the resistance zone.
The daily chart reflects a bullish engulfing pattern followed by a breakout confirmation, indicating a possible continuation of the uptrend. Short-term EMAs are rising sharply, highlighting the strength of the sustained momentum, Tailor noted.
Sharda Cropchem | Previous closing: $1,157.40 | Target price: $1,270 | Stop losses: $1,090
According to Tailor, Sharda Cropchem is showing strong bullish momentum, trading above all key daily DEMAs including the 20, 50, 100, and 200 levels, reflecting a healthy price structure and sustained uptrend.
The stock is also gaining support near its 20 DEMA, indicating continued buying interest on dips.
Recently, it has broken out of a short-term consolidation zone, indicating the continuation of the bullish momentum. The RSI around 59.62 remains above the midpoint, highlighting the underlying strength.
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Disclaimer: This story is for educational purposes only and does not constitute investment advice. The opinions and recommendations expressed are those of individual analysts or brokerage firms, not those of Mint. We advise investors to consult certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
