Religare Broking's Ajit Mishra Recommends 3 Stocks for Short-Term Investment

Market Update: Nifty 50 Falls, Mid and Small-Cap Indices Rise

On Thursday, 16 April, the Indian stock market benchmarks, the Sensex and the Nifty 50, ended lower due to profit booking in select heavyweights across sectors. The Nifty 50 settled at 24,196.75, down 0.14%. However, the mid and small-cap indices ended higher, with the Nifty Midcap 100 index rising 0.63% and the Nifty Smallcap 100 index increasing by 0.89%.

Experts believe that news flows surrounding the US-Iran conflict will remain a key trigger for markets, even as Q4 earnings may trigger stock and sector-specific movements. They recommend buying the dips, focusing on stock selection while monitoring earnings trends and geopolitical developments.

Market Recommendations

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According to Ajit Mishra, Senior Vice President of Research at Religare Broking, the Nifty and other indices are expected to remain volatile in the short term. Mishra recommends a 'buy on dips' approach, focusing on stock selection based on rotational sectoral trends. He also suggests closely monitoring earnings developments and geopolitical cues for further directional clarity.

Short-Term Stock Picks

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

Read also: MarketSmith India's 4 June Stock Recommendations

Bharat Electronics (BEL)

BEL shares have been trading within an upward-sloping channel over the past several months and have recently witnessed a strong rebound from the lower trendline, which aligns with the 200-day EMA. The stock has successfully surpassed its intermediate resistance and is gradually advancing toward the upper band of the channel, as well as its all-time high levels. The overall momentum remains positive, with the stock sustaining above its key moving averages. Additionally, momentum indicators continue to reflect strength, reinforcing the prevailing uptrend.

Power Grid Corporation of India

Power Grid presents a fresh buying opportunity near a key pivot level. Following a breakout from its corrective phase, the stock entered a tight consolidation range, forming a base above the neckline and important weekly moving averages, and has recently witnessed a fresh breakout from this base, signalling the start of a new leg of upward movement after accumulation. Considering the supportive sector momentum and strong technical structure, traders may consider initiating long positions within the specified range.

Steel Authority of India (SAIL)

The metal pack continues to exhibit strength, with SAIL maintaining its upward trajectory in line with its peers, steadily forming higher highs after rebounding from a role-reversal support zone and now approaching its previous swing high. The stock is trading above its short- to long-term moving averages, which are trending upward and well-aligned, indicating sustained positive momentum and underlying strength in price action.