Stocks to buy for short term: Jigar Patel of Anand Rathi says buy Axis Bank, Hindalco, L&T amid market turmoil

Indian stock market benchmark Nifty 50 is down about 16 per cent from its peak of 26,277, which it hit on September 27, due to massive capital outflow, economic growth losing steam and the rupee falling to record lows against the US dollar.

On Monday, March 3, the Nifty 50 declined almost half a per cent in morning trade to inch closer to its key support of 22,000.

Experts expect the index to find support around that level. However, a fall below this level could trigger a fresh wave of sharp selloff.

Shares to buy

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends buying shares of Axis Bank and Hindalco for the next two to three weeks. He recommends accumulating the shares of L&T. Here's what the expert says:

Axis Bank | Previous close: ₹1,015.55 | Target price: ₹1,130 | Stop loss: ₹980 | Upside potential: 11%

Axis Bank has established a solid base around the ₹990-1,025 zone, aligning with S1 quarterly pivots, indicating a bullish setup.

In the last trading session, it attempted to break above ₹1,025 but failed to sustain due to weak market sentiment.

This suggests that a confirmed breakout is needed for further upside momentum.

"We recommend going long if the stock closes above ₹1,030 on a daily basis, targeting ₹1,130 in the near term. A strict stop loss should be placed below ₹980 to manage risk," said Patel.

"Traders should watch for sustained buying interest to confirm the breakout and maintain upward momentum," Patel added.

Hindalco Industries | Previous close: ₹634.35 | Target price: ₹680 | Stop loss: ₹608 | Upside potential: 7%

The entire month of February has been phenomenal for Hindalco, as it rallied almost 18 per cent from the bottom of approximately ₹560.

Last week, we saw a decent correction of 6 per cent from the ₹656 top. Currently, Hindalco has closed above its previous swing high, forming a hammer-like candlestick that aligns with the R1 monthly pivot, as depicted in the chart.

"We expect Hindalco to make another high in the ongoing uptrend. Therefore, we advise going long in the ₹630-635 zone for an upside target of ₹680, with a stop loss placed below ₹608," said Patel.

Larsen & Toubro (L&T) | Previous close: ₹3,163.85 | Target price: ₹3,420 | Stop loss: ₹2,975 | Upside potential: 8%

Larsen & Toubro recently underwent a head and shoulders breakdown, leading to a sharp 20 per cent correction from its peak.

The stock has now met the pattern’s minimum downside target, suggesting that a base formation could emerge in the ₹3,080-3,120 range.

"Given this technical setup, we recommend accumulating L&T in the ₹3,100-3,150 zone, anticipating a potential rebound towards ₹3,420. A strict stop loss should be placed below ₹2,975 to manage risk. If the stock stabilises and reverses, it could offer a strong risk-reward opportunity," 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.