The Indian stock market showcased impressive performance last Friday, with the Nifty 50 index surging by 1.92%. Despite this remarkable gain, the benchmark index faced a setback over the past two weeks, reflecting broader economic apprehensions due to ongoing trade tensions. For the week, the Nifty 50 experienced a decline of 0.33%, following a more considerable drop of 2.61% the previous week. With the market set to close for Dr. Baba Saheb Ambedkar Jayanti on Monday and Good Friday on Friday, investors are keenly awaiting updates that could shape market sentiment.

Market Outlook: Short-Term Dynamics

As we move forward, several key factors will influence the Indian stock market’s trajectory. The upcoming Q4 earnings reports, developments in the trade war, and vital macroeconomic indicators are expected to play significant roles in determining market trends.

Recommended Stocks for Short-Term Investment

In light of anticipated volatility, industry expert Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, has identified three stocks poised for potential growth over the next few weeks: ITC, KNR Constructions, and Gujarat Ambuja Exports.

• ITC

  • Previous Close: ₹421.55
  • Target Price: ₹444
  • Stop Loss: ₹408

  ITC has recently broken through the R3 Camarilla Pivot resistance at ₹417, signaling a bullish breakout after a period of consolidation between ₹390 and ₹415. With the RSI moving above 60, bullish momentum is reinforced. Patel suggests that traders might consider entering long positions within the ₹420–422 range, targeting ₹444, while maintaining a stop loss below ₹408 for risk management.

• KNR Constructions

  • Previous Close: ₹227.62
  • Target Price: ₹250
  • Stop Loss: ₹214

  KNR Constructions has demonstrated a bullish divergence on its daily chart, indicating potential upward movement. The Inside Value relationship between March and April Camarilla pivots suggests price compression, often a precursor to significant breakout patterns. A long position is recommended in the ₹225–228 zone, with a target of ₹250 and a stop loss set below ₹214 to mitigate risk.

• Gujarat Ambuja Exports

  • Previous Close: ₹115.81
  • Target Price: ₹135
  • Stop Loss: ₹105

  After consolidating in the ₹99–110 range, Gujarat Ambuja Exports has recently initiated a breakout, signaling renewed bullish momentum. This consolidation near the S3 yearly Camarilla pivot adds strength to the bullish setup, supported by a bullish RSI divergence on the daily chart. Traders are encouraged to consider buying within the ₹114–116 range, with a stop loss at ₹105, aiming for an upside target of ₹135.

Conclusion

With the Indian stock market navigating through uncertainty, these stock picks offer potential opportunities for short-term investors. Paying attention to upcoming earnings and macroeconomic indicators will be crucial in making informed investment decisions. Stay tuned for more updates and insights on market trends.