Bulls likely to drive these 3 stocks for up to 19% return in short term

Expert bets on these 3 stocks for healthy return in short term

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26 Aug, 2025 12:21

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By Jigar S Patel, senior manager - equity research at Anand Rathi

January 2024 turned out to be a roller-coaster month but ended on very flat note with no major catalysts. Too many things happened during the month that were broadly in line with our expectations. To begin with, we mentioned our red flag zone of 22,000-22,400 for the Nifty benchmark index. At the start of the month, the index touched a new high of 22,100, after which it corrected till 21,100, which is nearly 1,000 points from its high. On the other hand, the expected level of 21,000 served as a strong support level, after which we saw a recovery to the level of 21,700.

According to the derivative data, the Nifty index turned from the level of 22,100 where the FII long short ratio of index futures reached the level of 70 percent. Then, there was a correction, and this data went down to the level of 20 percent. In general, this zone is seen as the oversold zone, and then the markets recovered. Therefore, based on the data (now again near 30 percent), we don't anticipate any major cracks in the market. However, if there is a significant cut, the markets may not be able to sustain at the lower levels.

On the technical side, the new high of Nifty is a Double Top, and a close above the level of 22,126 in February month could trigger a fresh round of rally. Therefore, investors and traders can only make aggressive bets above the same level. On the downside, 21,500 could be a zone of staggered buying next week.

Meanwhile, the Nifty Bank index was the biggest party spoiler in the market. The index not only outperformed the benchmark, but ended January 2024 with a cut of around 5 percent. As a result, the index retested its 200 DEMA (day exponential moving average), which was near 44,400. So 44,400 looks like the last hope for the bulls for the coming weeks. Weekly closings below the same can cause further panic.

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In the short-term, 45,000 could be a major support and if it does get support at the same, we might witness some recovery in the index. Overall, close above 47,000 can take Bank Nifty to 50,000 in the coming months..

Here are three buy calls for short term:

Rain Industries: Buy | LTP: Rs 180 | Stop-Loss: Rs 155 | Target: Rs 215 | Return: 19 percent

Since the last 2 months or so, the said counter has been consolidating between Rs 145 and Rs 155. Recently, it has given a breakout from the said range on a weekly closing basis, which is looking lucrative. Having said that, it has also formed a bullish Gartley pattern, which is 1.38 years old, thus making it more reliable. Also, it has violated a couple of trendlines.

The best part about this bullish reversal is that every bottom has bought with huge volume bars, which indicates bullish bias in the counter. On the indicator front, the weekly RSI (relative strength index) has given a trendline violation, which further affirms our bullish stance on the counter.

Thus, we advised traders and investors to go long in the range of Rs 172-182 with an upside target of Rs 215, and the stop-loss would be placed at Rs 155 on a daily close basis.

Note: The Gartley pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, which help traders, identify reaction highs and lows

Petronet LNG: Buy | LTP: Rs 269 | Stop-Loss: Rs 235 | Target: Rs 320 | Return: 19 percent

Since 2019 until 2023, Rs 240 levels have proved to be massive resistance. Fortunately, in January 2024, the said counter managed to clear its Rs 240 resistance very comfortably and is currently placed near Rs 270 zone. The breakout on the monthly chart looks genuine since it is accompanied by huge volume, with respective stochastics reversing from the 40 zone, which is looking lucrative at current levels.

Thus, investors and traders can enter longs in the zone of Rs 260–272 with an upside target of Rs 320 and a stop-loss of Rs 235 on a daily closing basis.

KPR Mill: Buy | LTP: Rs 790 | Stop-Loss: Rs 749 | Target: Rs 860 | Return: 9 percent

After making the top near Rs 928 on December 22, 2023, the said counter gave a decent correction until Rs 732. In the previous trading session, it bounced back from the support zone of Rs 730, coincidentally, which is between 100 and 200 DEMA, and in the process, it also took out its bearish trendline, thus making it attractive at current levels.

On the indicator front, daily stochastics has given a bull divergence, which further confirms our bullish stance on the counter. Thus, one can buy in the zone of Rs 780–795 with an upside target of Rs 860 and stop-loss orders would be placed on a daily closing basis around Rs 749.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.