Short-term stock purchases: Anand Rathi's Jigar Patel selects three shares to purchase over the next three to four weeks.

Short-term stocks to purchase: Due to poor Q3 profits and a withdrawal of foreign capital, the Indian stock market, the Nifty 50, fell by about 1% during the week ending January 17. When choosing stocks, experts advise exercising prudence.

Short-term stocks to purchase: The Indian stock market benchmark, the Nifty 50, fell almost 1% for the week ending January 17, continuing its losses for the second week in a row. Market mood was impacted by unimpressive Q3 profits, a flight of foreign capital, caution ahead of Budget 2025, and uncertainty around Donald Trump's trade intentions. On Monday, January 20, Trump is scheduled to return to the White House.

Due to both domestic and international causes, experts predict that the market will continue to be volatile in the near future.

"Modest Q3 expectations are likely to keep the market cautious in the near future, and ongoing FII outflows may increase volatility." With an emphasis on tariffs, the new US president's remarks and plans will be closely monitored. Market sentiment would be impacted by either higher inflation in Japan or stricter BoJ policy, according to Vinod Nair, head of research at Geojit Financial Services.

Experts advise exercising cautious while choosing stocks because market mood is still brittle. For the next two to three weeks, Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share & Stock Brokers, advises purchasing shares of Rico Auto, Chennai Petroleum, and IRCTC. This is what the specialist says:

IRCTC | Target price: ₹860 | Stop loss: ₹740 | Buying range: ₹775-780 | Previous close: ₹779.20
A possible trend reversal was indicated by the bullish harami pattern that IRCTC developed on January 14, 2025, which was followed by a powerful 5% gain. This pattern's significance was further reinforced by the fact that it appeared close to a significant historical support level from September 2023. The daily chart's RSI has also displayed a bullish divergence, suggesting a change in momentum and bolstering the bullish argument.

"This combination of RSI divergence, important level support, and positive price action points to a possible upward rise. Given this technological configuration, we advise investing in the ₹775-780 price range. The goal for this trade is set at ₹860, providing a favorable risk-reward ratio, while a stop-loss is set at ₹740 on a daily closing basis to manage risk," Patel stated.

Chennai Petroleum Corporation | Target price: ₹650 | Stop loss: ₹560 | Buying range: ₹585-595 | Previous close: ₹590.95

Chennai Petroleum saw considerable buying interest on December 19, 2024, when it produced a large bullish engulfing pattern and then rallied by an amazing 15%. The stock recently retreated close to the bullish engulfing candle's bottom, but it continuously closed above it, suggesting that the support is still in place and suggesting a possible turnaround. The purchasers' readiness to defend crucial levels is reflected in this price action.

The probability of upward momentum is further supported by the positive divergence displayed by the RSI (Relative Strength Index), which adds to the bullish view.

"A long position in the price band of ₹585-595 is recommended based on this combination of technical variables. To guard against downside risks, the trade incorporates a stop-loss at ₹560 on a daily closing basis. For traders hoping to profit from this possible reversal, the target price for this setup is set at ₹650, providing a favorable risk-reward ratio, according to Patel.

The probability of upward momentum is further supported by the positive divergence displayed by the RSI (Relative Strength Index), which adds to the bullish view.

"A long position in the price band of ₹585-595 is recommended based on this combination of technical variables. To guard against downside risks, the trade incorporates a stop-loss at ₹560 on a daily closing basis. For traders hoping to profit from this possible reversal, the target price for this setup is set at ₹650, providing a favorable risk-reward ratio, according to Patel.

Rico Auto Industries | Target price: ₹103 | Stop loss: ₹85 | Buying range: ₹90-92 | Previous close: ₹91.23

A possible trend reversal has been indicated by Rico Auto's recent formation of a bullish triple bottom pattern with bullish divergence. Furthermore, the stock reversed upward in the current month after taking support at the monthly CPR (Central Pivot Range), a critical zone that frequently indicates substantial buying interest. It increased by 4.66 percent in the last trading session, which further supported the upward momentum.

With a stop-loss at ₹85 to reduce downside risk, a long position in the price range of ₹90–92 is advised based on these considerations. With a favorable risk-reward ratio, the target price for this trade is set at 103 rupees, according to Patel.