Stocks to buy for short term: Reliance, DMart among 3 shares Anand Rathi's Jigar Patel recommends for next 1-2 weeks

Stocks to buy for the short term: Market benchmark Nifty 50 resumed its upward March last week, rising by 0.50% on a weekly basis for the week ended 17 July, after a mild 0.30% decline in the previous week.

On a monthly scale, the Nifty 50 is up 2% so far in July after a 1.4% rise in June. Year-to-date, however, the index is still 7% down.

The Indian stock market remained volatile during the week of July 13–17 due to tensions in the Middle East, fluctuating crude oil prices, foreign investors selling shares, and mixed global cues.

However, despite these uncertainties, the Nifty stayed within a narrow range of 24,000 to 24,300 for most of the week after lower-than-expected US inflation data increased hopes of an interest rate cut by the US Federal Reserve.

Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, highlighted that the overall trend remains positive, but the market has not yet confirmed a fresh rally.

"Investors can think of 24,000 as a strong floor, where buyers have repeatedly stepped in to prevent further declines. On the other hand, the 24,300–24,400 zone has acted like a strong ceiling, with sellers becoming active whenever the index approaches this area," said Patel.

"A strong closing above 24,400 is still required to confirm a breakout. If the Nifty manages to sustain above this level, it could move towards 24,600 and beyond. However, if it fails to cross this hurdle, the market may continue to trade sideways," Patel said.

On the downside, as per Patel, 24,000 remains the first support, followed by the stronger support zone of 23,800–23,600.

"As long as these support levels hold, the broader market trend remains positive, and investors should continue to follow a 'buy on dips' strategy, meaning they should gradually accumulate quality stocks during temporary declines instead of chasing prices after sharp rallies," said Patel.

For Bank Nifty, Patel said a decisive close above 59,000 could trigger a fresh rally, while a fall below 57,000 may lead to a short-term correction.

"Until either of these levels is broken, traders should expect range-bound movement, while long-term investors can continue to maintain a positive outlook on the market," said Patel.

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

As per Patel, the Reliance share price has formed a strong base in the ₹1,280 and ₹1,320 zone, which coincides with a previously established demand area, indicating renewed buying interest at lower levels.

The technical setup has turned constructive, with bullish divergence visible on both the MACD and its histogram, suggesting that downside momentum is fading and a potential trend reversal could be underway.

Adding further strength to the bullish outlook, Delta Volume has also registered a bullish divergence, reflecting accumulation by market participants despite recent price weakness.