Are you wandering here and there to find out what are the best stocks to invest in for the short term? well, we got your back for that. With the strong research skills, our technical analyst Mr. Karan pai has picked the Top 3 Stocks that would be best for a short-term investment. (Our Contribution to moneycontrol hot stocks). So, stocks for short-term investment are the best to pick for the coming 2-3 weeks. Before taking a deep dive into stocks to invest in for the short term let's understand the market fluctuations.
NIFTY on the monthly time frame seems to have halted the higher high higher low pattern after testing the 15431 marks.
On the weekly time frame, we saw a sharp bounce back from the 14248 mark, which also happens to be placed near the 25th March 2021 low.
On the option open interest front (22nd April 2021 expiry), huge participation and open interest addition are seen in the 15000 calls. On the Put side, open interest addition and participation are seen in the 14300 and 14000 Put contracts. Thus, going ahead, we can expect the broader range of the Nifty to be between 15000-14000.
On the indicator front, the ADX plotted on the Weekly time frame can be seen moving lower, indicating a lack of strength, as the index moves in a sideways range.
On the upside, the 14616 (Multiple touchpoint level) levels will act as a make-or-break level, if the index manages to move above this level, we might see the index move higher towards the 15000-15050 (Resistance zone) mark and eventually towards the 15220 level
The key support levels to watch for in the short term are 14248 (Weekly low). Followed by 13660 (38.2% retracement level of the rise from 10790-15431).
To sum it all up, currently, the index seems to be bouncing off the 14248 levels. The key level to watch for on the upside is 14600. If the index breaks above this level, we can expect acceleration in the bullish momentum that will take the prices towards 15000-15050 and eventually towards the 15220
The above analysis will not hold true if the index breaches and closes below the 14248 marks. If this level is breached, we might see the index move lower and test 13660.
On a weekly time frame, HDFCLIFE has been trading in a range for the past 15 weeks and has been closing above the 665-660 mark. The stock gained traction on April 13th, 2021, and managed to close near the 3-week peak. On the indicator front, the RSI plotted on the weekly time frame is above the 50 marks, and as the price moves higher, it bounces off the support level, suggesting the presence of bullish momentum. After maintaining above the 20 Week SMA, the stock is currently heading higher towards the upper Bollinger band. The primary resistance level for the rest of the way is 773 (61.8 percent extension level of the increase from 555.95-746 expected from 665), followed by 815. (78.6 percent extension level of the rise from 555.95-746 projected from 662).
If prices fall below 680, our bullish outlook will be shattered. If prices manage to stay below this level, the stock can move lower towards the 660 level. On a closing basis, the stock can be purchased at current prices (706) with a target of 773 and a target 2 of 815 and a strict stop loss of 680.
After bouncing off the 1785 mark, IPCALABS is going higher on the monthly time frame. On the weekly time frame, the stock tested a high of 2215 after breaking above the upper range of the 9-week consolidation and the 20 Week SMA. On the indicator front, the RSI plotted on the weekly time frame is above the 50 marks and heading higher, suggesting that the bullish trend has momentum. The immediate resistance level is set at 2416-2460 (38.2 percent extension level of the increase from 844-2460 expected from 1785 and the previous swing high), followed by 2783. (61.8 percent extension level of the rise from 844-2460 projected from 1785)
2020 (multiple touchpoint level) is the most important support level, followed by 1785 (recent swing low). Based on the above criteria and market behavior, we anticipate the stock to rise and test the 2460 level; if prices can sustain above this level, we can see a further rise to 2783. 2020 is the most important support standard, followed by 1785.
On a closing basis, one can buy the stock at current levels (2159) with a target of 2416-2460 and the second target of 2783, and a strict stop loss of 2020.
After bouncing off the 380 level, MARICO has been forming a higher high higher low trend for the past two months. On a weekly time frame, we can see that the stock has been trending higher for the past 5 weeks, with prices rising from 379 to 424. On the 13th of April, the stock gained traction and tested a three-day high; this upward movement was accompanied by above-average volume, indicating that investors are buying as prices rise. On the indicator front, we can see the MACD moves above the zero lines on the regular time frame, suggesting the presence of bullishness in the trend. The primary resistance level moving forward is 455 (38.2 percent extension level of the increase from 379 to 234-434 projected), followed by 479. (50 percent extension level of the rise from 234-434 projected from 379). On the downside, the main levels to watch are 406-400 (Support cluster) and 379. (Recent swing low). Based on the current market action and the technical parameters described above, we expect prices to rise to 455 and then 479. If prices fall below 400, our bullish outlook will be shattered. The stock can be purchased at current levels (421) with a goal of 455 and a strict stop loss of 400.
So, for this week that's it about stocks to invest in the short term. Do you know, Now you can get a Demat account in a few clicks and be a part of GEPL Capital’s trading family? Click here to claim your start investing. If you want to explore any other investment opportunity then visit here.
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