Stocks to buy for the short term: The Indian stock market benchmark, the Nifty 50, stayed in a tight consolidation phase for most of the last week. The index initially slipped below the 25,500 mark, signalling early selling pressure, but later recovered from lower levels.

According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, despite this rebound, the upside remained constrained as Nifty failed to convincingly move past the 25,900 resistance zone, eventually ending the week with limited change.

The overall markets remained range-bound amid cautious global cues and the ongoing Q3 earnings season, encouraging investors to remain selective rather than take aggressive positions.

Patel highlighted that on the technical front, Nifty has been moving sideways following last week’s unsuccessful breakout attempt and sharp reversal.

The index has managed to stay above the crucial 25,400 support, reaffirming it as an important near-term demand area.

“The Nifty is oscillating within the 25,400–25,900 band, reflecting uncertainty and lack of strong directional momentum. A clear breakout above 25,900 could signal the start of a fresh upward move, while a decisive fall below 25,400 would indicate renewed downside risk and shape the next phase of the trend,” said Patel.

“Volatility has also started to rise, with India VIX recovering to around 11 from recent lows near 9, highlighting that market complacency is easing and sharper movements are possible. In this scenario, a prudent and confirmation-based approach is recommended,” said Patel.

Stock picks for the short term

Jigar Patel recommends buying the following three stocks for the next one to two weeks:

Bajaj Auto | Buying zone: ₹9,500 to ₹9,400 | Target price: ₹10,350 | Stop loss: ₹9,000

Patel highlighted that Bajaj Auto has entered a healthy pullback phase after breaking out above its long-term falling trendline, as visible on the chart.

Such pullbacks are often considered constructive, as they allow prices to consolidate and attract fresh buying interest without damaging the overall trend structure.

From an indicator perspective, the Directional Movement Index (DMI) shows the positive line clearly in control, suggesting that buying strength is still dominant.

The Average Directional Index (ADX) is holding above the 20 level, which indicates that the trend is gaining stability and strength rather than weakening.

Meanwhile, the MACD remains above the zero line, reflecting positive momentum and supporting the continuation of the bullish trend.

“Based on this technical combination, the pullback is viewed as an opportunity rather than a sign of weakness. Hence, a buy-on-decline approach is advised in the ₹9,500–9,400 zone, with a stop loss at ₹9,000 to manage risk,” said Patel.

“On the upside, the stock has the potential to move towards the ₹10,350 level in the coming sessions, provided broader market conditions remain supportive,” Patel said.

Balkrishna Industries | Buying zone: ₹2,440 to ₹2,400 | Target price: ₹2,600 | Stop loss: ₹2,300

Patel said that Balkrishna Industries has shown a strong improvement in its technical structure, supported by multiple bullish signals.

The 9 and 26 DEMA have delivered a bullish crossover, indicating a shift in short-term momentum in favour of the bulls.

In addition, the stock has confirmed a breakout above its falling trendline, suggesting a change in the medium-term trend.

Momentum indicators further strengthen the positive outlook. The DMI has recorded a bullish crossover, reflecting increasing buying pressure, while the MACD has moved above the zero line, highlighting a transition into positive momentum territory.

“Considering this confluence of technical signals, a buy-on-dips strategy is recommended in the ₹2,440–2,400 zone, with a stop loss placed at ₹2,300. On the upside, the stock has the potential to move towards the ₹2,600 level in the near term,” said Patel.

Tata Elxsi | Buying zone: ₹5,600 to ₹5,500 | Target price: ₹6,250 | Stop loss: ₹5,200

As per Patel, Tata Elxsi’s share price has successfully retested its breakout zone, as highlighted on the chart, confirming the strength and sustainability of the recent breakout.

Volumes are picking up near lower levels, indicating strong accumulation interest and reinforcing the positive price structure.

The breakout above the falling trendline further supports a shift in the medium-term trend from bearish to bullish.

On the momentum front, the MACD is positioned above the zero line, signalling positive momentum, while the DMI continues to reflect bullish dominance.

Additionally, the ADX is holding above the 25 level, suggesting that the emerging trend is gaining strength and reliability.

“Considering this strong alignment of price action and indicators, a buy-on-dips strategy is advised in the ₹5,600–5,500 zone, with a stop loss at ₹5,200. On the upside, the stock has the potential to move towards the ₹6,250 level in the near term,” said Patel.

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