Stock Picks for Short-Term Gains: Anand Rathi's Jigar Patel Recommends BDL, Mazagon Dock, and Two Other Shares

Indian Stock Market Update: March 6, 2024

Market Analysis

The Indian stock market experienced a decline of nearly 3% for the week ending March 6, with the Nifty 50 and BSE Sensex extending losses to their second consecutive week. The Nifty 50 touched an intraday low of 24,415 but eventually settled at 24,450. The index is now more than 7% down from its record high of 26,373, hit on January 5.

Technical Analysis

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According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the market is currently undergoing a corrective phase after failing to sustain above the 25,800–26,000 resistance zone. The Nifty is hovering near a strong confluence support zone between 24,000 and 24,300, which combines a rising weekly trendline with a horizontal demand zone.

Stock Picks for the Short Term

Based on technical analysis, Patel recommends buying the following three stocks for the next one to two weeks:

Bharat Dynamics (BDL)

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• Previous close: ₹1,356.70
• Buying zone: ₹1,360–₹1,330
• Target price: ₹1,580
• Stop loss: ₹1,220

BDL shares have stabilised near the ₹1,220–₹1,250 zone, indicating strong buying interest at lower levels. Technical indicators are turning supportive, and a noticeable surge in trading volumes reflects renewed participation from market participants.

Mazagon Dock Shipbuilders

• Previous close: ₹2,471.90
• Buying zone: ₹2,480–₹2,400
• Target price: ₹2,650
• Stop loss: ₹2,300

The price has broken out of a regression channel, supported by a strong Pearson R score of 0.93, indicating a well-defined and reliable trend structure. Momentum indicators are also turning favourable, with a bullish crossover on the MACD and the RSI hovering near the 60 level.

Hindustan Aeronautics Limited

• Previous close: ₹2,811.40
• Buying zone: ₹2,820–₹2,800
• Target price: ₹3,000
• Stop loss: ₹2,700

HA's shares have shown a strong recovery, supported by a rising trendline and a horizontal demand zone. Technical indicators are also turning supportive, with a bullish divergence on the RSI and Stochastics.