Stocks to buy for short term: Jigar Patel of Anand Rathi picks THESE 3 shares to buy for the next 2-3 weeks

Stocks to buy for short term: Indian stock market benchmark, Nifty 50, ended in the red on Saturday, February 1, snapping its four-day winning streak after Finance Minister Nirmala Sitharaman announced a Union Budget that was broadly in line with expectations.

The Nifty 50 is now above the 23,000 mark, but global cues, especially uncertainty surrounding US President Donald Trump’s tariff policies, remain key risks for the market.

Besides, on investors’ radar is this week’s interest rate decision of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI).

The Indian stock market is expected to remain volatile, tracking global cues and due to caution ahead of the RBI MPC outcome this week. At this juncture, experts recommend betting on select quality stocks. Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends buying shares of Tata Power, Nestle and Zee Entertainment for the next two to three weeks. Here’s what the expert says:

Stocks to buy

Tata Power Company | Previous close: ₹368.40 | Buying range: ₹360-365 | Target price: ₹410 | Stop loss: ₹340

In September 2024, Tata Power peaked at ₹495, then declined about 32 per cent, forming a pattern of lower highs and lower lows.

It has created a bullish AB=CD pattern and a double bottom near the ₹340 support level.

This double bottom falls between the 50 per cent and 61.8 per cent Fibonacci retracement of the prior rally.

Also, bullish divergence is visible in slow and fast stochastics, indicating potential upward momentum.

“Given these signals, we recommend initiating a long position between ₹360-365, targeting a price of 410. A stop-loss should be set below 340 on a daily closing basis to manage risk,” said Patel.

Nestle India | Previous close: ₹2,327.20 | Buying range: ₹2,275-2,330 | Target price: ₹2,550 | Stop loss: ₹2,175

Last week, Nestle India found strong support in the ₹2,130-2,100 zone, where multiple technical factors aligned, leading to a sharp 5.40 per cent rebound.

The support zone was reinforced by a long-term trendline from 2018 on the weekly chart, the 200-period EMA on the weekly timeframe, and the previous breakout zone, making it a strong buy candidate.

This confluence of support indicates a potential trend reversal.

“Given this setup, we recommend going long in the ₹2,275-2,330 range, targeting ₹2,550. A stop loss should be placed below ₹2,175 on a daily closing basis. The technical structure suggests a favourable risk-reward ratio, making this an attractive opportunity for positional traders looking to capitalize on the stock’s strength,” said Patel.

Zee Entertainment Enterprises (ZEEL) | Previous close: ₹109.05 | Buying range: ₹107-110 | Target price: ₹130 | Stop loss: ₹97

ZEEL has formed a bullish butterfly pattern near the ₹100 level, signalling a potential reversal. Back-to-back bullish Harami candlesticks further validate this pattern on January 29 and 31, 2025.

Additionally, the RSI exhibits an impulsive structure near the oversold zone, suggesting lower-level buying interest.

The hourly Stochastics also indicate bullish divergence, reinforcing the likelihood of a trend reversal.

“Given these technical signals, we recommend a long position in the ₹107-110 zone, with an upside target of ₹130. A stop-loss should be placed below ₹97 on a daily closing basis. This setup presents a favourable risk-reward opportunity, with multiple bullish confirmations supporting a potential recovery in the stock,” said Patel.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.