Take a overview before going to short term shares to buy. After settling with strong gains in the April series, the Indian market began the May series on a negative note with bears once again taking control.
Subdued global cues amid rising tension between the US and China hit the sentiment, while weak earnings of big domestic companies and India’s record low April manufacturing PMI data aggravated the worries of investors.
On the derivatives front, we are witnessing a continuous addition of open interest at 9,400 and 9,500 call strikes that point towards a limited upside in the prices.
On the downside, however, marginal put writing was observed at 9,000 strikes which should act as strong support for Nifty.
On the technical front, secondary oscillators and price action is suggesting some consolidation in a broader range of 9,000-9,500 in the coming sessions.
At the current juncture, traders should remain focussed on stock-specific moves and are advised to trade cautiously tracking global markets as volatility is likely to grip the domestic markets in the coming few sessions.
Here are short term shares to buy (three stock recommendations for the next 3-4 weeks):
AstraZeneca Pharma India | Buy | LTP: Rs 3,220 | Target price: Rs 3,800 | Stop loss: Rs 2,700 | Upside: 18%
After falling back below Rs 1,900 in late March 2020, the stock saw a V-shape recovery on the daily charts and once again reclaimed Rs 2,900 levels in a short span of time.
At the current juncture, the stock has formed an inverted head and shoulder pattern on the daily charts and also given breakout above the neckline of the pattern formation.
The additional volume with the rising price is pointing towards a new upswing in the stock in the coming sessions.
Traders can accumulate the stock in the range of Rs 3,100-3,150 levels for the upside target of Rs 3,800 levels with stop loss below Rs 2,700.
Aarti Industries | Buy | LTP: Rs 1,138 | Target price: Rs 1,302 | Stop loss: Rs 940 | Upside: 14%
The stock saw a V-shape recovery from the lows of Rs 670 and managed to once again surpass above its 200-days exponential moving average on the daily charts.
At the current juncture, the stock is trading in a rising channel and has given the breakout above multi-month highs along with large volumes.
Secondary oscillators on the long term charts, also suggest that the trend is likely to continue towards the north in the coming sessions.
Traders can accumulate the stock in the range of Rs 1,075-1,110 levels for the upside target of Rs 1,302 levels with a stop loss below Rs 940.
Bharti Airtel | Buy | LTP: Rs 528.80 | Target price: Rs 625 | Stop loss: Rs 465 | Upside: 18%
After taking support at its 200-days exponential moving average on the daily interval, the stock has been consistently trading in a rising channel and maintaining its uptrend with the formation of a higher high and higher bottom pattern.
However, from the last few sessions, the stock was seen consolidating in the range of Rs 480-530 with constantly holding above its short and long-term moving averages on the daily interval.
This week, we have observed fresh breakout into the prices after prolonged consolidation. Additionally, a breakout has been seen above the bullish flag pattern which suggests further upside into the prices.
Traders can accumulate the stock in the range of Rs 525-530 for the upside target of Rs 625 levels with a stop loss below Rs 465.
(The author is Senior Technical Analyst at SMC Global Securities)