Top stocks to buy for short term: Stock market benchmark Nifty 50 ended with a strong loss of 257 points, or 1.11%, at 22,888.95 on Monday, 19 October, snapping its two-day winning run, due to persistent global and domestic macroeconomic concerns
Higher brent crude prices amid geopolitical tensions and supply-side uncertainties have fuelled concerns over inflation flare-up. Besides, foreign capital outflow, elevated bond yields in the US and chances of further rate hikes by the US Federal Reserve are also key concerns, keeping market sentiment low.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, underscored that from its 8 October low of 22,180, the Nifty has seen some decent rise, which reinforces the view of avoiding panic selling during the breakdown near 22,200.
"We maintain our 'buy on dips' stance. The immediate support zone is placed at 22,800–22,600, with 22,600 emerging as a crucial level to defend. On the upside, 23,200 remains the immediate resistance. A sustained breakout above this level could open the door towards 23,600 in the coming week," said Patel.
For Bank Nifty, Patel said that a sustained move above 56,000 could trigger further upside towards 57,000, which remains a crucial resistance level. On the downside, support has shifted higher to the 55,200–54,700 zone, making it an important area to monitor.