Stocks to buy for short term: Infosys among 3 shares Amol Athawale of Kotak Securities recommends for next 1-2 weeks

Stocks to buy for the short term: The Indian stock market benchmark Nifty 50 suffered a sharp correction on Wednesday, closing 516 points, or 2.12%, lower at 23,882, while the BSE counterpart Sensex suffered a loss of 1,677 points, or 2.15%, ending at 76,503.60.

Fresh escalations in the Middle East tensions and a jump in crude oil prices spooked domestic investors. However, foreign portfolio investors (FPIs) remained buyers for the fourth consecutive session on Wednesday in the cash segment. On Wednesday, FPIs bought Indian stocks worth ₹1,962.80 crore.

On the technical front, the Nifty formed a long bearish candle on the daily charts, indicating the possibility of further weakness from current levels.

Amol Athawale, VP - Technical Research at Kotak Securities, believes the short-term market trend has shifted from positive to negative, and for day traders, selling on rallies remains the preferred strategy.

As per Athawale, immediate resistance for the Nifty is at 24,000 and 24,050.

He believes that as long as the market trades below these levels, the weak sentiment is likely to persist.

"The index may retest its 50-day SMA near 23,800, while extended selling could drag it further towards 23,600. Conversely, if the index moves above 24,050, the overall sentiment could improve. A sustained move beyond this level may trigger a pullback towards 24,150–24,200," said Athawale.

Athawale said that given the current volatility, adopting a level-based trading approach would be the most suitable strategy for day traders.

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

Athawale pointed out that Infosys share price reversed from its important demand zone after a declining trend.

The stock has formed a rounding bottom chart pattern on the daily scale, and it is in a gradual recovery mode.

The technical indicator, like RSI, is also indicating a further move up from current levels, which could boost the bullish momentum.

"As long as the stock is trading above ₹1,030, the reversal move is likely to continue. Above which, the stock could move up to ₹1,140," said Athawale.

Athawale said that after its declining trend, the National Aluminium share price is in the accumulation zone, where it is trading in a range-bound mode on the daily scale.

However, recent bullish activity in the stock is indicating good strength.