Jigar Patel of Anand Rathi Identifies Top Short-Term Stock Picks, Including Jio Financial and Hero MotoCorp

Indian Stock Market Sees Positive Movement Ahead of May

The Indian stock market, which had been in a four-month losing streak, rebounded in April with the Sensex and Nifty 50 rising 7% each. Global factors, crude oil prices, and Q4 earnings remained the dominant themes of the market, and are likely to continue influencing the market in May.

Encouraging signs are emerging on the geopolitical front, with US President Donald Trump stating that his representatives are engaged in "very positive" talks with Iran. Major global markets were in the green on Monday morning, while Brent Crude prices were below the $110 per barrel, indicating a potential positive movement in the domestic market.

From a technical perspective, Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted that the Nifty 50 faced resistance near the 61.8% Fibonacci retracement level, while holding above the crucial 23,800 support level, which remains key for the short-term trend.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Patel believes that a decisive break below 23,800 may lead to a decline towards 23,500, while a sustained move above 24,400 could trigger fresh upside momentum. He also pointed out that the Bank Nifty has taken support near the 38.2% retracement of the recent rally, forming an equal length (AB=CD)/alternate wave pattern near the 1.27 extension on the hourly chart, supported by a hidden bullish divergence.

Short-term Stock Picks

Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

1. Jio Financial Services: Patel says that the stock has recently established a strong base near the 78.6% Fibonacci retracement zone, indicating emerging buying interest at lower levels. The stock has also formed an inverse head and shoulders pattern, with a confirmed neckline breakout signalling a potential bullish reversal. Momentum indicators remain supportive, with the RSI sustaining above the 50 mark, reflecting improving strength and a positive bias.
2. Hero MotoCorp: Patel notes that the stock has completed a classic alternate wave price projection pattern, with the AB=CD structure reflecting symmetry in the ongoing move. This measured move aligns within the 78.6%–88.6% internal Fibonacci retracement zone, highlighting it as a key potential reversal area.
3. Castrol India: Patel pointed out that the stock has completed a classic alternate wave price projection pattern, with the AB=CD structure highlighting symmetry in the ongoing move. This measured move aligns with the 61.8% internal Fibonacci retracement, reinforcing the importance of this zone as a potential reversal area.

Patel recommends buying these stocks in the specified ranges, with a stop loss at the specified levels and an upside target of the specified prices.