Shares to purchase for brief time period: Jigar Patel of Anand Rathi suggests Tata Metal, SAIL, Tanla; right here’s why

Shares to purchase for brief time period: Indian inventory market benchmark Nifty 50 has been down for the third consecutive session. On the month-to-month scale, nevertheless, the index is up with a nominal acquire of about 0.20 per cent after 4 consecutive months of losses since October.

Nifty 50 ended 43 factors, or 0.18 per cent, decrease at 23,559.95 on Friday, February 7, after the Reserve Financial institution of India (RBI) reduce the repo fee by 25 bps after nearly 5 years.

Weak company earnings, world uncertainty and overseas capital outflow have been maintaining the market down. Buyers’ focus now will probably be on the upcoming macroeconomic information, together with the Index of Industrial Manufacturing (IIP) and Client Worth Index (CPI) inflation, this week.

At this juncture, consultants advocate betting on high quality shares. Jigar S. Patel, Senior Supervisor of Fairness Analysis at Anand Rathi Share and Inventory Brokers, recommends shopping for Tata Metal, SAIL and Tanla shares for the following two to a few weeks. This is what the professional says:

Shares to purchase

Tata Metal | Earlier shut: ₹138.31 | Shopping for vary: ₹135-138 | Goal worth: ₹150 | Cease loss: ₹130

Tata Metal has discovered robust help on the 200-period EMA (exponential transferring common) on the weekly chart, reinforcing a possible reversal.

This help coincides with a number of technical components, making it a high-probability zone for a rebound. Firstly, the value is retesting its earlier breakout zone, a key stage the place demand may emerge.

Moreover, it aligns with the S3 yearly Camarilla help, which frequently acts as a powerful flooring for worth motion.

The Bullish Bat reversal zone additional signifies a possible bounce based mostly on harmonic evaluation. Furthermore, the inventory has retraced 50 per cent of its total upmove from June 2022 to June 2024, a traditional Fibonacci retracement stage the place reversals generally happen.

“We advocate going lengthy within the ₹135-138 zone, with a goal of ₹150 and a stop-loss at ₹130 on a day by day closing foundation,’ mentioned Patel.

Metal Authority of India (SAIL) | Earlier shut: ₹110.32 | Shopping for vary: ₹108-110 | Goal worth: ₹121 | Cease loss: ₹104

SAIL has undergone a big correction, retracing 50 per cent of its upmove from June 2022 to Could 2024. Since Could 2024, the inventory has been forming a decrease lows and decrease highs construction on the day by day chart, resulting in a pointy 75-point correction, equal to a 43 per cent decline.

Nevertheless, a double-bottom formation has not too long ago emerged close to the 50 per cent retracement stage, which additionally aligns with a earlier breakout zone, including energy to this help.

“This confluence of things makes SAIL a horny shopping for alternative. Given the technical setup, one can think about shopping for within the ₹108-110 zone, aiming for an upside goal of ₹121, whereas maintaining a stop-loss beneath ₹104 on a day by day closing foundation,” mentioned Patel.

Tanla Platforms | Earlier shut: ₹558.65 | Shopping for vary: ₹540-560 | Goal worth: ₹675 | Cease loss: ₹490

Tanla has not too long ago accomplished a two-year-old Bullish Bat sample, which started in March 2023 and concluded in January 2025.

For the reason that sample developed over an prolonged interval, we anticipate a pointy reversal within the inventory.

Moreover, the S2 and S3 yearly Camarilla helps align with the reversal zone, additional strengthening the bullish case.

This confluence of technical components makes the inventory a horny purchase.

“One can go lengthy within the ₹540-560 vary, concentrating on an upside of ₹675, whereas sustaining a stop-loss beneath ₹490 on a day by day closing foundation. Given the long-duration sample and robust help ranges, the setup presents a high-probability commerce with beneficial risk-reward dynamics,” Patel mentioned.

Learn all market-related information right here

Learn extra tales by Nishant Kumar

Disclaimer: The views and proposals above are these of particular person analysts, consultants, and brokerage companies, not Mint. We advise buyers to seek the advice of licensed consultants earlier than making any funding choices.