Stocks to buy for short term: Jigar Patel of Anand Rathi suggests 3 stock picks; do you own any?

Stocks to buy for the short term: After two consecutive weeks of losses, the Indian stock market benchmark Nifty 50 rose 4.5 per cent in the holiday-shortened week as a pause in US reciprocal tariffs boosted sentiment.

Buying by foreign portfolio investors (FPIs) and the forecast of an above-normal monsoon also boosted sentiment.

FPIs bought Indian equities worth ₹14,670 crore in the cash segment last week amid chatter that the economic impact of tariffs imposed by US President Donald Trump would be relatively lower on India.

Meanwhile, the India Meteorological Department (IMD) has been forecasting above-normal monsoon rains during the coming season in the country.

While the current sentiment is positive, the Indian stock market is expected to remain volatile in the near term, driven by stock-specific movements due to quarterly results and management commentaries. Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends buying shares of LIC, Kotak Mahindra Bank and Cello World for the next two to three weeks.

Stock picks for the short term

Life Insurance Corporation Of India (LIC) | Previous close: ₹803.20 | Target price: ₹885 | Stop loss: ₹755

After peaking at ₹1,222 in August 2024, LIC witnessed a sharp decline of nearly 500 points, translating to a 42 per cent correction.

Recently, the stock has formed a classic inverse head and shoulders pattern — a bullish reversal setup.

The price has also successfully retested the neckline of the pattern and shown strength, indicating a potential trend reversal.

"We recommend going long in the ₹790–805 range with an upside target of ₹885 and a stop loss at ₹755 on a daily closing basis," said Patel.

Kotak Mahindra Bank | Previous close: ₹2,188.10 | Target price: ₹2,400 | Stop loss: 2,000

Kotak Mahindra Bank has recently broken out of a long-standing consolidation range between approximately 1,600 and 2,050, which had persisted for the past three to four years.

This breakout is significant, as it indicates a potential shift in the long-term trend. Supporting this bullish view, the monthly RSI is firmly above the 60 mark, reflecting underlying strength and momentum.

"Given these technical signals, we recommend initiating long positions in the ₹2,150–2,200 zone. The upside target is placed at ₹2,400, while a stop loss should be maintained below ₹2,000 on a daily closing basis to manage risk effectively. The setup offers a strong reward-to-risk opportunity," said Patel.

Cello World | Previous close: ₹590.95 | Target price: ₹680 | Stop loss: ₹540

Cello World recently formed a double bottom with bullish divergence and broke above a falling trendline, signalling potential reversal. Strong volume in the ₹535–565 zone adds bullish confirmation.

Both March and April 2025 camarilla monthly pivots show an inside value relationship, where the current month's pivot lies within the previous month’s range, often a precursor to an explosive move.

"We recommend going long in the ₹580–595 range with a target of ₹680 and a stop loss at ₹540 on a daily closing basis," said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.