Short-Term Stock Picks: Anand Rathi’s Expert Recommends Tata Motors, Zee Entertainment, and Tata Technologies
Nifty 50 Dips Despite Positive Signs
The Indian stock market benchmark Nifty 50 experienced a 1.4% drop last week, breaking a streak of three consecutive weeks of gains. This decline came amid heightened tensions between India and Pakistan. However, the market managed to limit its losses thanks to positive factors such as foreign institutional inflows, strong GST collections in April, stable Q4 results, and a weaker US dollar.
India-Pakistan Situation Remains Uncertain
This week, the ongoing situation with India and Pakistan is expected to continue influencing market sentiment. While a “bilateral understanding” was reached on the Line of Control and International Border, concerns remain as drones were sighted in parts of India after India announced the “ceasefire.”
Technical Analysis and Cautious Outlook
Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, points to technical indicators that suggest caution. He highlights that a breach of the support level of 23,800 could lead to further downward movement towards 23,500, which aligns with the 200-day EMA. A bearish engulfing pattern on the weekly chart further reinforces this cautious outlook.
Patel advises traders to adopt a defensive stance, trim aggressive long positions, and consider hedging strategies around key levels unless Nifty 50 convincingly reclaims 24,500.
Short-Term Stock Picks
Despite the cautious outlook, Patel recommends buying shares of three companies for the next two to three weeks:
Tata Motors
Previous close: ₹ 708.50 | Target price: ₹ 780 | Stop loss: ₹ 660
Patel sees reversal signals in Tata Motors at key support zones. The stock has established a strong base near the S3 Camarilla yearly support, indicating potential downside exhaustion. A bullish divergence is visible on the weekly chart, further supporting this view. The RSI on the weekly timeframe has also formed an inverse head-and-shoulders pattern, with the neckline already breached, strengthening the bullish outlook. Patel recommends a long position in the ₹690–710 range, with an upside target of ₹780 and a protective stop loss below ₹660 on a daily closing basis.
Zee Entertainment Enterprises
Previous close: ₹ 115.80 | Target price: ₹ 135 | Stop loss: ₹ 104
Zee Entertainment is approaching a critical technical juncture supported by a strong confluence of time and price factors. It is nearing a key Gann level of 432 (144 × 3), indicating a potential time/price square-out. A bullish inverse head and shoulders pattern has recently formed on the daily chart, with a successful neckline breakout followed by a retest, adding reliability to the setup. With bullish divergence also visible, Patel advises a long position in the ₹113–116 range, targeting ₹135, with a stop loss at ₹104 on a daily closing basis.
Tata Technologies
Previous close: ₹ 665.95 | Target price: ₹ 735 | Stop loss: ₹ 625
Tata Technologies is nearing a key technical inflection. Time and Fibonacci confluence are in focus. The stock is approaching a critical technical juncture, underscored by the convergence of key time cycles and Fibonacci ratios. The ongoing setup aligns with a 35–36 week time cycle, closely matching the Fibonacci number 33, a level often associated with cyclical reversals. The stock’s correction from point A to B was 30%, followed by a deeper 47.45% retracement from C to D. The ratio between these moves, 1.58, is strikingly close to the Golden Ratio (1.618), while the inverse, 0.632, reflects its reciprocal (0.618). In terms of price symmetry, the A–B decline measured ₹416.60, whereas the C–D leg corrected ₹539, yielding a ratio of approximately 1.27—the square root of the Golden Ratio. This move also mirrors the 0.786 retracement level, itself the square root of 0.618, adding further technical confluence. Patel advises to go long in the counter in the zone of ₹658-668 with an upside target of ₹735, and the stop loss would be ₹625 on a daily close basis.
