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

Stocks to buy for the short term: The domestic market experienced significant volatility during the week ended Friday, 10 July, primarily driven by a sharp spike in the volatility index, India VIX.

The volatility index surged 26% on 8 July, reflecting increased investor nervousness and uncertainty. The benchmark Nifty 50 crashed 2.12% on the same day.

However, sentiment improved in the latter half of the week, leading to a moderation in volatility, with the India VIX ultimately closing nearly 4% higher and the Nifty 50 ending with a modest decline of 0.26% on a weekly basis.

During the week, the Nifty touched an intraday high and low of 24,530.90 and 23,805.20, respectively.

From a technical perspective, Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, believes the broader market structure continues to remain constructive.

However, Patel added that there is a possibility of one more corrective leg towards the 6 June bullish gap near 23,650, which would complete an ABC corrective pattern on the daily chart.

Patel said such a decline, if witnessed, should be viewed as a healthy retracement rather than a trend reversal, offering investors an opportunity to accumulate quality stocks at attractive levels.

"On the upside, the high of 24,300 recorded on 8 July remains the immediate hurdle. Therefore, the 24,300–24,600 zone is expected to act as a strong supply zone. On the downside, 23,800 remains the immediate support, followed by the strong support zone near 23,500," said Patel.

"As long as these levels hold, our strategy continues to be 'buy on dips,' as the broader market structure remains positive, and further upside cannot be ruled out," Patel said.

For Bank Nifty, Patel said since the 200 EMA and 200 SMA are flat on the daily chart, the back-and-forth movement may continue. A major breakout will be confirmed only above the 59,000 mark.

"A decisive close above 59,000 would confirm a fresh leg of the uptrend and open the door for higher levels, whereas a break below 57,000 could trigger a short-term corrective phase. Until either of these levels is breached, traders should expect range-bound price action while maintaining a positive medium-term outlook on the index," said Patel.

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

Patel pointed out that Swiggy share price appears to be at the early stage of a medium-term trend reversal after completing a probable five-wave corrective decline, with the recent sharp recovery suggesting the formation of an A-B-C bullish corrective structure.

The stock has witnessed a strong surge in cumulative volume delta (CVD), indicating fresh institutional accumulation and improving buying conviction after a prolonged distribution phase.

On the weekly chart, the RSI has rebounded from oversold territory and is moving higher, signalling that downside momentum is fading.