Jigar Patel of Anand Rathi offers three technical options for the next 2-3 weeks

Stocks to purchase for the short term: The Indian stock market benchmark Nifty 50 finished with a robust gain of more than 4% last week, the most significant weekly advance in more than four years, with shares of SBI Life Insurance, Shriram Finance, and HDFC Life Insurance up 9-11%. Comfortable values, evidence of foreign portfolio investors (FPIs) returning to the Indian stock market, better economic data, and anticipation of more rate reduction from the RBI and the US Federal Reserve were the primary drivers of the market’s highest weekly gains since February 2021. US President Donald Trump’s tariff plans, the growing situation in the Middle East, and the anticipated Q4 figures will all influence the market’s sentiment in the near future.

Stock selections for the short term:

Given that the market is projected to continue turbulent in the near future, experts advise prudence while selecting stocks. Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share & Stock Brokers, suggests investing in Nykaa, BHEL, and Escorts for two to three weeks. Nykaa stock has lately held in the ₹163-168 range, coinciding with the R3 camarilla monthly pivot, showing strong bullish momentum. Furthermore, the RSI indicates a bullish divergence and a descending trendline breakthrough in the price action, reinforcing the optimistic picture. “Considering these factors, we recommend initiating long positions in the ₹170-173 zone, with an upside target of ₹190.” Patel recommends setting a daily stop loss below ₹164 to reduce risk.

Bharat Heavy Electricals Limited (BHEL):

BHEL just broke above the neckline of an inverse head and shoulders pattern, which was followed by an RSI bullish divergence, indicating a strong rising trend. Prior to the breakthrough, the RSI traded in a tight band of 35-50, signaling the possibility of an explosive move in the next days. These technical aspects reinforce the stock’s positive outlook. “We recommend starting long positions in the ₹208-212 range, with an upside target of ₹233.” To manage risk, set a stop loss at ₹201 on daily close. This setting indicates a favorable risk-to-reward opportunity for traders,” Patel stated.

Escort Kubota:

Escorts just broke above the neckline of an inverse head-and-shoulders pattern, which was followed by a bullish RSI divergence, indicating significant upward momentum. The neckline coincides with R3 camarilla resistance, which has been broken by a single clean green candle, confirming our bullish position on the counter. “We recommend to go heavy in the counter in the zone of ₹3,200-3,230 for an upside target of ₹3,535, and stop loss should be maintained below ₹3,080 on a daily close basis,” Patel said.