The Indian stock market benchmarks, the Sensex and the Nifty 50, snapped their three-day losing streak on Thursday, supported by positive global cues. This optimism stemmed from signs of defusing the Greenland crisis and a potential India-US trade deal moving closer. The Nifty 50 ended at 25,289.90, rising 0.53% on the day.
Market Sentiment Improves Amid Global Developments
Ajit Mishra, Senior Vice President of Research at Religare Broking, observed that sentiment improved significantly amid reports of easing geopolitical tensions and a perceived reduction in near-term tariff risks following comments from the US President at Davos. "Global markets rallied overnight, and this positive momentum spilt over into domestic equities, leading to short-covering and renewed buying interest across sectors," Mishra noted.
Mishra highlighted that the Nifty is hovering around its long-term moving average, the 200-day DEMA near the 25,150 level. He emphasised that sustaining above the 25,150 level will be crucial for any further recovery towards the 25,600 mark. If the index fails to sustain it, the downtrend may resume, with the next support in the 24,750–24,900 range.
At this juncture, Mishra suggests investors should focus on risk management and pick stocks with strong technical and fundamental setups. Here are three stock picks for the short term, as recommended by the expert.
Bharat Electronics (BEL): Defence Sector Outperformer
Last traded price (LTP): ₹417.30 | Buy | Target price: ₹445 | Stop loss: ₹401
Mishra said that within the defence sector, BEL has emerged as a relative outperformer, demonstrating strong price resilience by sustaining at elevated levels. The stock has been in a prolonged consolidation phase for over a year, forming a trend-continuation structure that typically precedes the next leg of an uptrend.
It has developed multiple bullish structures within the broader consolidation range, strengthening the conviction of an impending breakout and the start of a new upward leg. Recently, BEL formed a pivot near its key short-term moving average, supported by a bullish RSI crossover, signalling improving short-term momentum.
"Investors looking to align with budget-related opportunities may consider BEL, given its favourable technical setup," said Mishra.
Godrej Consumer Products: Bullish Momentum Resumes
LTP: ₹1,246 | Buy | Target price: ₹1,330 | Stop loss: ₹1,200
As per Mishra, Godrej Consumer Products witnessed a strong rally earlier and, after peaking near ₹1,540, underwent a healthy retracement toward its 200-week EMA, where fresh buying interest emerged. The fact that the long-term EMA continues to slope upward reaffirms the broader bullish undertone.
Technically, the stock has broken above its declining trendline and is sustaining well above it. Following this breakout, it has entered a tight three-week consolidation, indicating potential for a resumption of upside momentum.
"The stock is trading above its key moving averages, and momentum indicators remain bullish, suggesting strength in the current setup. Given this price action, long positions may be considered in Godrej Consumer Products within the specified range," said Mishra.
Jindal Steel: Gearing Up for Upside Move
LTP: ₹1,076 | Buy | Target price: ₹1,170 | Stop loss: ₹1,030
Mishra underscored that Jindal Steel, after lagging the broader metal rally, is now showing signs of gearing up for an upside move. The stock has formed a higher base and is approaching a key resistance zone, with a potential breakout likely to pave the way for fresh record highs.
Within the context of a broader uptrend, a decisive breakout would signal the start of a new leg higher. "A supportive sectoral environment combined with a constructive chart structure offers traders an attractive opportunity to initiate fresh buying positions," said Mishra.
In summary, the Indian stock market's rebound on Thursday offers a window for strategic short-term investments. Experts advise careful selection based on technical and fundamental strength, with these three stocks presenting potential opportunities in the current market scenario.
