Stocks to Buy for Short Term: From BDL to Tata Power— Anand Rathi's Jigar Patel Recommends 3 Stocks

Stocks to buy for the short term: The Indian stock market benchmark Nifty 50 ended above 25,700 on Friday, October 17, extending gains to the third consecutive session. On a weekly basis, the index also rose for the third consecutive week on stable Q2 results and valuation comfort in large caps. The coming week is a truncated one due to the Diwali holiday. The BSE and the NSE will be closed on Tuesday October 21 for Diwali and Laxmi Pujan, and on Wednesday October 22 for Diwali Balipratipada. In the coming week, news on US tariffs and trade deals, second quarter earnings trends, and the movement of the rupee will dictate market movement. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Stocks and Equity Brokers, underlined that the Nifty 50 is currently above all major moving averages, reflecting strong underlying trend strength. On the indicator front, MACD generated a bullish crossover, which acted as a catalyst for the recent rally. Patel said from the September 2025 bottom of 24,587.70, the Nifty 50 has rallied 1,194 points, translating into 4.86 percent gains in a short span, without any significant pullback. “At this point in time, the index seems overstretched, and a brief profit-taking or sideways correction over the next three to four sessions cannot be ruled out. Immediate support is placed at 25,500–25,400, while resistance is seen in the 25,800–26,000 zone,” Patel said. “Similar to the Nifty 50, Bank Nifty also looks overstretched, increasing the likelihood of a short-term pullback or consolidation in the coming sessions. Supports are placed at 57,300 and 57,000, while resistance is seen around 58,000–58,200,” Patel said. Overall, Patel said, while the medium-term structure remains bullish, a short-term corrective phase or range-bound action is healthy for the market after such a strong upward move. “Traders should take a buy-on-dip approach and keep a close eye on support zones for new entry opportunities,” Patel said. Stock picks for the short term Jigar Patel recommends buying shares of BDL, Tata Power and VBL for the next one to two weeks. Bharat Dynamics (BDL) | Previous Close: ₹1,540 | Buy Range: ₹1,550–1,500 | Target Price: ₹1,725 ​​| Stop loss: ₹1,410 Patel said BDL has shown strong base creation near the 200 EMA and 200 SMA, indicating a solid demand zone and long-term support. A trendline breakout was recently confirmed, accompanied by an increase in volume, reflecting renewed bullish participation. On the momentum front, the RSI is also breaking out of its trend line, further strengthening the bullish outlook. This confluence of signals suggests that the stock may be poised for an upward move. “One can initiate long positions in the ₹1,550–1,500 zone with an upside target of ₹1,725. A stop loss should be placed below ₹1,410 on a daily closing basis to effectively manage risk. A sustained move above the breakout zone could accelerate the momentum and open the door for further upside. Bharat Dynamics Technical Chart Tata Power Company | Previous closing: ₹397.80 | Buy Range: ₹400–395 | Target Price: ₹435 | Stop Loss: ₹375 Patel pointed out that Tata Power Company has seen strong consolidation above the 200 EMA and 200 SMA, indicating solid support and base building at lower levels. Recently, the stock confirmed a trendline breakout, supported by a MACD bullish crossover just above the zero line, indicating a strengthening momentum. “This confluence of technical signals indicates a potential continuation of the uptrend. Traders may consider going long in the ₹400–395 zone for an upside target of ₹435 while maintaining a stop loss at ₹375 on a daily closing basis,” Patel said. “A sustained move above the breakout zone could attract fresh buying interest and lead to a strong follow-on rally in the near term,” Patel said. Tata Power Company technical chart Varun Beverages (VBL) | Previous Close: ₹461.55 | Buy Range: ₹463–455 | Target Price: ₹505 | Stop Loss: ₹430 Patel pointed out that VBL has seen a sharp correction of nearly 19 percent from its recent high of around ₹534 and is currently trading near the ₹460 mark. It is encouraging that the share is a higher high and higher low structure has started to form, indicating early strength. “A bullish alternate bat pattern is visible in the ₹435–440 support zone, paired with hidden bullish divergence on the MACD daily chart, indicating the underlying buying momentum,” Patel said. Adding to the positive setup, a parabolic SAR breakout also emerged, which further supporting a potential trend reversal. “Technically, this confluence of signals indicates a favorable risk-reward entry. Traders are advised to buy in the ₹463-455 zone with a target of ₹505 and a stop loss at ₹430 on a daily close basis. Sustained momentum above the recent swing high in the coming session may accelerate the upside session,” Patel said. Varun Beverages technical chart Read all market related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The opinions and recommendations expressed are those of the expert, not Munt. We advise investors to use certified consult experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.