Kotak Securities Analyst Identifies Three Stocks for Short-Term Gains

Indian Stock Market Sees Gains on Wednesday

The Frontline indices, the Sensex and the Nifty 50, ended higher on Wednesday, 20 May, supported by gains in select heavyweights. The Sensex ended 118 points, or 0.16%, higher at 75,318.39, while the Nifty 50 closed at 23,659, rising 41 points, or 0.17%.

Market experts believe that the domestic market may remain range-bound over the next few sessions, reacting to global cues. According to Amol Athawale, VP of Technical Research at Kotak Securities, the market's immediate support levels are likely to be 24,500 and 24,400, while the 23,800–23,850 range may act as a crucial resistance.

If the market sustains above 23,850, further upside towards 23,950–24,000 could be seen. However, a breakdown below 23,400 may increase selling pressure and drag the indices towards 23,250–23,200.

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

In light of the current sideways and non-directional market structure, traders are advised to adopt a level-based intraday trading strategy.

Stock Picks for the Short Term

Amol Athawale recommends the following three stocks to buy for the next 1-2 weeks:

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

Praj Industries

Praj Industries has found support at the retracement zone and rebounded, showing a steady recovery from its recent lows. On the daily chart, it has also broken out of a downward-sloping trend line, indicating strengthening momentum. This price action signals the potential start of a fresh bullish phase from current levels.

The ₹370 level will act as a key support for Praj Industries. If the stock sustains above this mark, it could continue its upward movement and gradually advance towards the ₹415 level in the near term.

HDFC Life Insurance Company

HDFC Life Insurance Company shares have entered an accumulation phase, moving within a defined range on the daily chart. Recent bullish activity suggests improving strength and rising buying interest. A breakout from the range appears likely in the near term, offering a favourable risk-reward opportunity from current levels.

For positional traders, ₹580 is a crucial level to watch. Sustaining above this mark could confirm an uptrend and drive the stock toward ₹650. However, a close below ₹580 would weaken the structure, and traders may consider exiting long positions to manage downside risk effectively.

ONGC

After a sharp uptrend rally, ONGC witnessed a bit of selling pressure, but eventually its downward momentum paused, and it has found support. On the daily charts, the stock has formed a cup and handle kind of formation, and a fresh breakout from the resistance zone is very likely to occur in the coming trading sessions.

As long as the stock is trading above ₹288, the bullish texture is likely to continue. Above which, the stock could move up to ₹320.