Stocks to buy for short term: Swiggy, HEG, SBI Life among 6 stocks that may rise 12-24% in 3-4 weeks, say analysts

Stocks to buy for the short term: Gains in shares of select heavyweights amid positive global cues helped the Indian stock market snap its five-day losing streak on Monday, December 23. The Nifty 50 closed 166 points, or 0.70 per cent, up at 23,753.45.

Rupak De, Senior Technical Analyst at LKP Securities, observed that the Nifty 50 formed a bullish Harami Cross pattern on the daily chart, indicating a potential rise in market optimism. Besides, the index closed above the 200-EMA (exponential moving average).

"Going forward, a decisive move above 23,850 could trigger a smart recovery towards 24,000 and 24,400. On the downside, support is placed at 23,540; a breach below this level may lead to further weakness in the index," said De.

Shares to buy

Considering the prevailing uncertainty in the market, experts suggest buying quality stocks at this juncture. Vishnu Kant Upadhyay of Master Capital Services and Mandar Bhojane of Choice Broking suggest the following six stocks to buy for the short term:

Vishnu Kant Upadhyay, AVP of Research & Advisory at Master Capital Services

SBI Life Insurance Company | Previous close: ₹1,405.30 | Stop loss: ₹1,340 | Target price: ₹1,521, ₹1,570 | Upside potential: 12%

SBI Life Insurance's stock is witnessing a promising setup as prices stabilise near a significant horizontal support level of around ₹1,370.

Historically, this level has acted as a strong demand zone, leading to a reversal in prices.

The RSI is hovering near oversold territory, suggesting the possibility of a bounce-back as selling pressure diminishes.

Additionally, the MACD histogram shows signs of reducing bearish momentum.

"With the validation of ₹1,340 on the downside, prices will attract fresh buying interest, potentially initiating an upward rally towards ₹1,521-1,570," said Upadhyay.

HEG | Previous close: ₹532.30 | Stop loss: ₹497 | Target price: ₹605, ₹620 | Upside potential: 16.5%

HEG displays a bullish outlook on the weekly chart as prices recently broke above a long-term resistance zone near ₹510, turning it into strong support.

The stock remains well-supported by the 21-week EMA, indicating a sustained uptrend.

The RSI is positioned above 60, reflecting positive momentum, while the MACD shows a bullish crossover, signalling further upside potential.

"Prices are now looking to pave the way for ₹605 and ₹620. Traders may consider the ₹497 level as a key support for accumulating positions," Upadhyay said.

KEC International | Previous close: ₹1,220.55 | Stop loss: ₹1,076 | Target price: ₹1,400, ₹1,450 | Upside potential: 19%

KEC International has witnessed strong bullish momentum, with the stock recently breaking above a key resistance level near ₹1,100 on the weekly chart, supported by significant volume.

The 21-week EMA is trending upward, reflecting a robust uptrend. The RSI is nearing the overbought zone at 70, signalling strong positive sentiment, while the MACD is firmly in bullish territory, reinforcing the upward bias.

"We believe every fall in the market towards ₹1,100 will attract fresh buying opportunities with ₹1,400 and beyond in sight. The breakout zone near ₹1,100-1,076 is expected to act as a crucial support for any pullback," Upadhyay said.

Mandar Bhojane, Equity Research Analyst, Choice Broking

New India Assurance Company (NIACL) | Previous close: ₹202.25 | Stop loss: ₹199 | Target price: ₹245, ₹250 | Upside potential: 24%

NIACL is consolidating just below a key resistance level, positioning itself on the verge of a potential breakout. The price has recently retested this breakout level, which adds strength to the pattern.

Moreover, the surge in trading volumes indicates significant buying interest, suggesting the possibility of continued bullish momentum.

"A sustained close above ₹216 could act as a trigger for short-term price targets of ₹245 and ₹250. On the downside, immediate support is located at ₹209, providing a favourable entry point for those looking to buy on dips," said Bhojane.

"To manage risk effectively, a stop loss at ₹199 is recommended to protect against unforeseen market pullbacks. The overall technical setup suggests a positive outlook, with well-defined entry, targets, and risk management levels," Bhojane said.

Swiggy | Previous close: ₹583.65 | Stop loss: ₹560 | Target price: ₹680, ₹700 | Upside potential: 20%

Swiggy stock has been consolidating near its all-time high on the daily chart. This consolidation, supported by a significant increase in trading volume, indicates strong buying interest and the potential for further upward movement.

"A close above ₹615 could open the door for short-term targets of ₹680 and ₹700, with the breakout suggesting the continuation of the bullish trend," said Bhojane.

"On the downside, immediate support is seen at ₹585, which offers an attractive entry point for those looking to capitalise on potential dips. To manage risk effectively, a stop loss at ₹560 is recommended, providing protection against unexpected market reversals. Overall, the stock's technical setup appears positive, with clear levels for entry, targets, and risk management," Bhojane said.

Raymond | Previous close: ₹1,782.40 | Stop loss: ₹1,605 | Target price: ₹1,980, ₹2,000 | Upside potential: 12%

Raymond has recently breached a descending trendline on the daily chart. The price is now consolidating above the breakout level, which signals the possibility of a continuation breakout. This potential move, coupled with a notable increase in trading volume, suggests strong bullish momentum.

"A decisive close above ₹1,800 would pave the way for short-term price targets of ₹1,980 and ₹2,000. On the downside, immediate support is observed at ₹1,680, presenting a favourable buying opportunity on any pullbacks. To effectively manage risk, a stop-loss at ₹1,605 is advised to protect against potential market reversals," said Bhojane.

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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.