Religare Broking Analyst Recommends 3 Stocks for Short-Term Gains: PFC, Tata Steel, and Other Picks

Market Rebounds on Favourable Global Cues

Domestic market benchmarks, the Sensex and the Nifty 50, clocked strong gains on Thursday, supported by favourable global cues amid the ongoing visit of US President Donald Trump to China. The Nifty 50 ended at 23,689.60, rising 1.18%, while the Sensex jumped 1.06% to settle at 75,398.72.

The improvement in sentiment was attributed to favourable global cues and easing concerns over immediate geopolitical escalation following optimism surrounding ongoing discussions between the US and Chinese leadership regarding the broader Middle East situation. Oversold market conditions and bargain buying in select index heavyweights also aided the rebound.

However, the overall mood remained cautious due to elevated crude oil prices, continued weakness in the rupee, and sustained foreign institutional outflows. Technically, the Nifty is witnessing a relief rebound after the recent slide.

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Stock Picks for the Short Term

Ajit Mishra, SVP of Research at Religare Broking, recommends the following three stocks for the next 1-2 weeks:

Comparison of Stock Picks

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

Stock Analysis

Power Finance Corporation (PFC)

Power Finance Corporation has shown a healthy correction in an up-move where the primary trend of the stock is positive, approaching its crucial support zone near its rising moving average. The ongoing decline appears to be forming a falling wedge pattern, typically considered a bullish continuation structure.

Despite recent profit booking, the stock continues to maintain a higher high and higher low formation, indicating underlying strength in trend structure. Volume behaviour remains supportive, suggesting accumulation at lower levels.

Momentum indicators are gradually stabilising, and any breakout above the falling trendline could trigger renewed buying interest and continuation of the primary upward trend.

Tata Steel

Tata Steel has exhibited renewed bullish momentum following a decisive breakout toward fresh swing highs, reaffirming the strength of the prevailing upward trend. The stock continues to trade comfortably above its key moving averages, indicating sustained medium- to long-term positive price structure.

Elevated volumes during the breakout phase highlight strong market participation and accumulation at higher levels. In addition, momentum oscillators remain positively aligned, supporting the likelihood of further upside extension.

Overall, the technical configuration remains constructive and suggests continued strength with a favourable near-term outlook for the stock.

Divi's Laboratories

Divi's Laboratories is showing a strong bullish setup on the weekly chart, supported by a decisive breakout above a prolonged falling channel’s resistance. The stock has regained strength after a consolidation phase and is trading comfortably above its key moving averages, indicating an improving trend structure and sustained buying momentum.

The recent breakout from the broader consolidation channel suggests the potential for trend continuation in the coming sessions. Momentum indicators are gradually strengthening, while higher highs and higher lows reinforce the prevailing bullish bias and improving medium-term outlook.