Looking for quick returns in the volatile stock market? Religare Broking's VP of Research, Ajit Mishra, has identified three compelling stocks that show strong short-term potential. Here's why these picks deserve your attention.
Nestlé India: The Defensive Powerhouse
Even in uncertain markets, some companies continue to shine. Nestlé India stands out as a defensive play with impressive technical momentum. The stock has recently broken out of a consolidation phase, signaling strong bullish sentiment.
Why it works now: As a market leader in fast-moving consumer goods (FMCG), Nestlé benefits from consistent demand regardless of economic cycles. The technical breakout suggests institutional confidence, making it a relatively safe bet for short-term gains with limited downside risk.
Biocon: The Pharma Contender Bouncing Back
After facing significant pressure, Biocon appears poised for a recovery. The pharmaceutical giant has shown signs of bottoming out and is now building momentum for an upward move.
The opportunity: Biocon's recent price action indicates that the worst might be over. For traders looking to catch the early stages of a rebound, this stock offers substantial upside potential. The pharma sector's inherent stability combined with technical recovery signals makes Biocon an attractive short-term play.
The Infrastructure Dark Horse
While specific names beyond Nestlé and Biocon weren't detailed, Mishra emphasizes infrastructure as a promising sector. Companies in this space are benefiting from increased government spending and economic recovery trends.
Sector advantage: Infrastructure stocks typically respond well to economic growth indicators and policy support. For short-term traders, these stocks can provide explosive moves based on project announcements and execution milestones.
Expert Trading Strategy
Mishra recommends a disciplined approach for short-term trading:
- Entry timing: Look for minor dips to establish positions
- Risk management: Always use stop-loss orders to protect capital
- Profit booking: Take gains at resistance levels rather than being greedy
- Sector rotation: Focus on sectors showing relative strength in current market conditions
The current market environment favors selective stock picking over broad market bets. These three recommendations represent sectors with strong fundamentals and positive technical setups, making them ideal candidates for traders seeking short-term opportunities.
