The Nifty 50 ended 0.60% higher at 22,555.75 on Monday, 5 October. Experts suggest buying stocks like Azad Engineering and Kirloskar Oil Engines for the short term. Vishnu Kant Upadhyay said, "The near-term view remains sell on rise." Investors hope for recovery, though the broader technical structure still looks weak.
Top stocks to buy for the short term: The Nifty 50 ended 0.60% higher at 22,555.75, snapping its four-session losing streak, on Monday, 5 October, amid a decline in crude oil prices and positive global cues as investors dialled back expectations of aggressive monetary tightening by the US Federal Reserve after softer-than-expected US jobs data.
After testing the crucial long-term support around 22,400, the index witnessed some recovery. However, experts believe that despite the bounce, the broader technical structure remains weak, with the index trading well below its key moving averages and continuing to form lower highs and lower lows.
"The near-term view remains sell on rise, with any recovery towards 22,800 likely to attract selling pressure. On the downside, 22,400-22,300 may provide buying support," said Vishnu Kant Upadhyay, AVP- Research, Master Capital Services.
Stock picks for the short term
Vishnu Kant Upadhyay of Master Capital Services and Hitesh Tailor of Choice Broking recommend buying the following six stocks for the next 1-2 weeks:
Expert: Vishnu Kant Upadhyay, AVP- Research, Master Capital Services
Azad Engineering | Buy at ₹2,927 | Target prices: ₹3,280 and ₹3,350 | Stop loss: ₹2,660
According to Upadhyay, Azad Engineering stock has maintained a strong bullish trajectory after decisively breaking above its previous all-time high near ₹2,000.
Since the breakout, the stock has consistently formed higher highs and higher lows, reflecting sustained buying interest and a robust uptrend.
Notably, successive corrective phases have found support around the 21 EMA or 55 EMA, highlighting strong demand on declines and reinforcing the trend structure.
The stock has also consistently outperformed the broader benchmark, indicating relative strength.
"Currently, the RSI stands at 59, suggesting positive momentum while still leaving room for further upside before entering overbought territory. The overall technical setup remains constructive, favouring a buy on dip approach," said Upadhyay.
Kirloskar Oil Engines | Buy at ₹2,244 | Target prices: ₹2,520 and ₹2,650 | Stop loss: ₹2,025
Upadhyay said Kirloskar Oil Engines' stock has delivered a decisive breakout from its consolidation phase above ₹2,280, signalling renewed buying interest and continuation of the broader bullish trend.
Prior to the breakout, the stock had been consolidating around the 21 and 55 EMAs while maintaining its positive price structure, indicating accumulation at higher levels.
The recent breakout has also confirmed a new higher high, strengthening the medium-term chart setup.
"Following the breakout, the stock has retraced towards the ₹2,280 breakout zone, presenting a potential buy on dip opportunity. The RSI at 54 indicates positive momentum with sufficient room for further upside, supporting the constructive technical outlook," said Upadhyay.
Upadhyay underscored that Aditya Infotech stock has decisively broken above the upper boundary of its ascending channel, strengthening the ongoing bullish trend and signalling scope for further upside momentum.
The stock has consistently formed higher highs and higher lows, reflecting a strong bullish chart structure and sustained buying interest.
Price action remains comfortably above all its key moving averages, further supporting the underlying trend strength.
"The RSI at 62 indicates healthy positive momentum while still offering room for further upside. Additionally, the MACD is showing a bullish divergence, suggesting improving momentum and strengthening the probability of continued upward movement," said Upadhyay.
Expert: Hitesh Tailor, Technical Research Analyst at Choice Broking
Thyrocare Technologies | Buy at ₹542 | Target price: ₹600 | Stop loss: ₹515
According to Tailor, Thyrocare Technologies stock is witnessing buying interest from a major support zone where the stock has previously registered multiple reversals.
The formation of a spinning top candlestick near this crucial level indicates indecision among market participants, with potential for a positive reversal if buying momentum strengthens.
The stock is also sustaining above its 200-day EMA, indicating that the broader price structure remains positive and the long-term trend continues to provide support.
"With ₹515 placed as the key stop loss, sustained strength from current levels could pave the way towards the ₹600 target," said Tailor.
Carborundum Universal | Buy at ₹1,267 | Target price: ₹1,400 | Stop loss: ₹1,200
Tailor underscored that Carborundum Universal stock is displaying a strong technical structure on the daily chart after delivering a decisive breakout from a sideways consolidation range and comfortably holding above it.
The stock continues to trade above its key moving averages, confirming sustained underlying bullish momentum.
Furthermore, momentum indicators reinforce this positive trajectory, with the daily RSI displaying a strong rebound from near its central midpoint level to 62.44, indicating active buying interest and scope for further upward movement.
"The technical setup favours buying around ₹1,267, with ₹1,200 acting as the strict risk-control level and ₹1,400 as the potential upside objective. Maintain disciplined risk management," said Tailor.
Mishra Dhatu Nigam (MIDHANI) | Buy at ₹440 | Target price: ₹475 | Stop loss: ₹420
Tailor highlighted that MIDHANI is displaying continued bullish strength as it trades above all key moving averages, following strong buying interest aligned with major EMA support.
The stock recently initiated a firm bounce from this demand zone, forming a bullish candlestick structure on the daily chart that signals active accumulation and trend continuity.
Momentum indicators further confirm this positive outlook, with the daily RSI staging a healthy rebound from near its central midpoint level to 57.31, reflecting strengthening buying pressure and potential for further upside expansion.
"The overall technical setup favours buying around ₹440, with ₹420 acting as the strict risk-control level and ₹475 as the potential upside objective. Maintain disciplined risk management," said Tailor.