Stocks to Buy for Short-Term Gains: Anand Rathi Analyst Picks Three Shares

Indian Markets Show Strong Buying Momentum, Experts Suggest Short-Term Buys

The Indian equity benchmarks, Sensex and Nifty 50, have risen for the second consecutive week, with gains of 1.2% and 1.3%, respectively, for the week ended April 17. This rally, which began from a recent low of 22,200 on April 2, has seen the Nifty gain nearly 2,100 points, indicating strong buying momentum. However, the index is now approaching an important resistance area of 24,300-24,500, which may lead to some investors booking profits and causing short-term weakness.

Nifty and Nifty Bank Show Signs of Temporary Correction

Despite the positive trend, some experts warn of a temporary correction in the near future. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, suggests that a "buy on dips" approach near support zones may be the best strategy for traders. Nifty Bank also recovered strongly after opening weak near 54,500 and closed around 56,500. However, it is now nearing a major resistance zone of 57,200-57,500. If it fails to cross this level, a pullback may happen, with immediate support placed at 56,000.

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Stock Picks for Short-Term Gains

Patel has identified three stocks that have shown strong potential for short-term gains: APL Apollo Tubes, Tata Power Company, and PB Fintech (Policybazaar).

APL Apollo Tubes has recently confirmed a strong breakout above the ₹2,070 resistance zone and is sustaining above this level, indicating renewed buying momentum. The breakout suggests that the stock may enter the next leg of its upward trend if it continues to hold above the breakout zone. Momentum indicators, such as RSI and MACD, are also supporting the bullish outlook.

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Tata Power Company has recently witnessed a breakout above its falling trendline, indicating a potential reversal in trend and fresh bullish momentum. The breakout reflects improving sentiment and suggests that buyers are regaining control after a consolidation phase. Supporting indicators further strengthen the positive outlook.

PB Fintech has witnessed a strong breakout after consolidating for nearly 43 trading sessions. The stock has moved above its falling trendline, indicating a potential trend reversal and fresh bullish momentum. Supporting indicators also strengthen the positive view.

Recommendations

Patel advises accumulating APL Apollo Tubes, Tata Power Company, and PB Fintech in their respective buying zones, with stop losses at ₹1,975, ₹395, and ₹1,500, respectively. On the upside, the stocks have the potential to move toward their target prices of ₹2,355, ₹475, and ₹1,795, respectively, in the near term.