HDFC Life, Britannia among stocks to buy | Kotak Securities' expert bullish on 3 shares for the short term

As the Indian stock market displays signs of recovery, Kotak Securities' Amol Athawale identifies three top picks for short-term investments. Discover how these stocks are poised for potential gains despite current market turbulence.

Stocks to buy: Stock market benchmarks, the Sensex and the Nifty 50, ended higher on Wednesday ahead of the US Federal Reserve's policy decision.

On Thursday, 17 September, the Nifty opened at 23,195.25 against its previous close of 23,217.60, but soon erased losses, rising about 0.20% to 23,264.

While the index rebounded from lower levels, experts believe the short-term trend remains weak.

According to Amol Athawale, VP - Technical Research at Kotak Securities, for day traders, 23,350 would serve as an immediate resistance zone. Below this level, weak sentiment is expected, and the index may retest 23,100-23,000. On the upside, a move above 23,350 could extend the pullback toward 23,450-23,500.

Amol Athawale recommends buying the following three stocks for the next 1-2 weeks:

Athawale underscored that after a prolonged decline, MFSL has rebounded from a key demand zone, signalling renewed buying interest.

It has formed a bullish engulfing candlestick pattern on the daily charts. The RSI indicator also points to strengthening momentum, indicating potential for further upside.

"For the near term, ₹1,430 remains a crucial level for bulls. If the stock holds above this support, the positive trend is likely to persist, with the possibility of the price advancing toward the ₹1,580 level in the coming sessions," said Athawale.

Athawale said on a broader time frame, HDFC Life Insurance Company shares had been in a prolonged downtrend. Therefore, currently it is near to its oversold territory.

The texture of the chart formation and technical indicator RSI is indicating that the stock is very likely to rebound for a new leg of the up move from its current levels.

"For positional traders, ₹510 would be the decisive level. Trading above the same uptrend formation will continue till ₹570. However, if closes below ₹510 traders may prefer to exit out from trading long positions," said Athawale.

Athawale highlighted that on the daily timeframe, following a correction from higher levels, Britannia has bounced back from a key demand zone, reflecting renewed buying interest.

It has developed bullish reversal patterns on both daily and intraday charts. The RSI indicator also signals improving momentum, suggesting scope for further upside.

"In the near term, ₹4,840 remains a key level for the bulls. As long as the stock sustains above this support, the reversal setup is expected to remain intact, with the price potentially moving toward ₹5,370 in the coming horizon," said Athawale.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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