Stocks to buy for short term: Mahindra and Mahindra among 3 shares Amol Athawale of Kotak Securities recommends
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The Nifty 50 index has opened lower and is experiencing a four-session decline, currently trading below crucial support levels. Technical analyst Amol Athawale suggests that if the index remains below 24,100, bearish sentiment may continue, potentially leading to further declines towards 23,750-23,700. He recommends buying Mahindra and Mahindra, Marico, and Apollo Hospitals for short-term gains, provided they maintain key support levels.
Stocks to buy for the short term: The Indian stock market benchmark Nifty 50 opened 0.40% lower at 23,905 on Thursday, 23 July, and extended losses to hit an intraday low of 23,876, down 0.50% from the previous close of 23,996.
The index is now down for the fourth consecutive session and is below its crucial support of 24,000-24,100.
In the previous session, the index slipped below the 20-day SMA (simple moving average) near 24,100. On daily charts, it formed a long bearish candle, indicating continued weakness from the current levels.
Amol Athawale, VP - Technical Research at Kotak Securities, believes that as long as the index trades below 24,100, weak sentiment may persist.
He said the ongoing correction could extend towards the 50-day SMA, or 23,850. Additional downside may also emerge, potentially dragging the index to 23,750–23,700.
However, if the market moves above 24,100, sentiment could improve, and it may rebound to 24,200–24,250, said Athawale.
Amol Athawale recommends buying the following three stocks for the next 1-2 weeks:
Athawale pointed out that after the downward rally, the Mahindra and Mahindra share price is consolidating within a symmetrical triangle pattern on the daily chart.
The presence of higher lows highlights sustained buying interest and underlying strength, suggesting a potential breakout ahead.
"For traders, the key level to monitor is ₹3,060, which acts as immediate support. If the stock holds above this level, the positive trend structure would remain intact," said Athawale.
"A decisive move beyond the consolidation range may trigger further upside, with the stock likely to head toward the ₹3,390 level in the coming sessions," Athawale said.
Athawale said that on the weekly scale, after a remarkable rally and a breather of the last few sessions, the Marico share price is gaining further traction for an up move.
The breakout from the consolidation structure of the chart formation indicates a bullish continuation pattern. Therefore, upward momentum in the stock is likely to persist in the near term.
"As long as the stock is trading above ₹830, the bullish texture is likely to continue. Above which, the stock could move up to ₹920," said Athawale.
As per Athawale, on the daily charts, Apollo Hospitals Enterprise's share price is in a rising channel formation with a higher-low series.
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