The Indian stock market is facing challenges as the Nifty 50 benchmark has resumed its downward trend, following a modest gain of nearly 2% last week. On March 10, the index dropped by 0.41%, and it continued to decline with a 0.60% fall the following day. Investor sentiment is currently shaky, largely due to concerns over U.S. President Donald Trump’s tariff policies and their potential ramifications for the global economy. Meanwhile, domestic factors such as foreign capital outflow and disappointing earnings reports are also contributing to the overall market unease.
Stock Recommendations Amid Market Volatility
In light of the prevailing market conditions, experts recommend a cautious approach when selecting stocks. Analysts Vishnu Kant Upadhyay from Master Capital Services and Hardik Matalia from Choice Broking have identified six stocks that may offer short-term opportunities over the next 2-3 weeks. Here’s a breakdown of their recommendations:
1. InterGlobe Aviation (IndiGo)
- Previous Close: ₹4,627.55
- Target Price: ₹5,065
- Stop Loss: ₹4,350
- Upside Potential: 9%
InterGlobe Aviation has recently broken out of a symmetrical triangle pattern, indicating a potential bullish trend reversal. The stock surpassed the resistance level near ₹4,560, supported by strong trading volume, which signifies ongoing buying interest. With positive indicators such as an RSI of 67.25 and a supportive MACD, further gains are anticipated. Upadhyay suggests that if the breakout holds, targets could extend to ₹5,150.
2. Deepak Fertilizers and Petrochemicals Corporation
- Previous Close: ₹1,097.15
- Target Price: ₹1,235
- Stop Loss: ₹1,024
- Upside Potential: 13%
This stock has shown significant strength, surging over 17% last week. It has reclaimed key moving averages, with immediate support at the 200-day EMA of ₹1,024. The RSI is currently at 56.10, signaling renewed bullish momentum, while a positive MACD crossover reinforces the potential for further gains. Upadhyay advises investors to consider accumulating on any dips.
3. Aadhar Housing Finance
- Previous Close: ₹426.90
- Target Price: ₹456 and ₹463
- Stop Loss: ₹380
- Upside Potential: 8%
Aadhar Housing has formed a strong bullish candlestick on high volume, indicating strong buying momentum. The stock has decisively moved above the 100-day EMA, suggesting a trend reversal. With an RSI of 65.47, the outlook remains positive, and further gains towards ₹456-460 are likely as long as it maintains above the 21-day EMA.
Additional Stock Picks
4. Cholamandalam Financial Holdings
- Previous Close: ₹1,624.65
- Target Price: ₹1,780 and ₹1,820
- Stop Loss: ₹1,540
- Upside Potential: 12%
Cholamandalam is consolidating and may be on the verge of a breakout. The stock’s recent bounce from lower levels suggests a potential trend reversal, supported by healthy trading volumes. Matalia notes that if it sustains above ₹1,680, potential targets of ₹1,780-1,820 could be reached.
5. JSW Energy
- Previous Close: ₹505.35
- Target Price: ₹550 and ₹565
- Stop Loss: ₹478
- Upside Potential: 12%
After a recent decline, JSW Energy is now approaching a demand zone, indicating a possible breakout. Matalia suggests that if the stock maintains above ₹520, it could see upward momentum toward ₹550-565.
6. Power Grid Corporation of India
- Previous Close: ₹271.30
- Target Price: ₹300 and ₹310
- Stop Loss: ₹257
- Upside Potential: 14%
Power Grid is signaling a potential trend reversal after a significant 32% correction. The stock is now consolidating, suggesting a base formation, and has formed a strong bullish candle supported by rising volumes. Matalia indicates that sustaining above the 20-day EMA could lead to targets of ₹300-310.
Conclusion
Investors are encouraged to exercise caution while navigating the current market landscape. The identified stocks offer promising opportunities for short-term traders looking to capitalize on potential gains. As always, thorough research and risk management are essential in this volatile environment.
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