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Stocks to buy for the short term: The Indian stock market witnessed profit booking on Friday, February 6, amid weak global cues. The Nifty 50 fell by half a per cent, snapping its three-day winning run.

Selling was broad-based, with metals, auto and realty among the major drags. Broader markets also followed the negative trend, with both midcap and small-cap indices slipping, reflecting a cautious stance among participants.

Ajit Mishra, SVP of Research at Religare Broking, highlighted that despite lingering optimism around the India–US trade agreement, mixed global cues and profit booking dominated market action.

"The continued slide in precious metal prices and weakness in global technology stocks also contributed to domestic selling pressure, keeping sentiment subdued and participation selective across sectors," Mishra said.

Mishra maintains a positive stance on the Nifty and recommends continuing a buy-on-dips approach as long as the index holds above the 25,400 level, with upside potential toward 26,000 initially and then a move toward fresh record highs.

"Traders are advised to remain selective, focus on stock-specific opportunities, and follow disciplined risk management given the possibility of further volatility," said Mishra.

Mishra pointed out that there is a notable strength across the oil marketing space, with IOC also moving in line with the broader positive trend.

"The stock has confirmed a breakout from a cup and handle pattern — a classic continuation formation that typically emerges after a consolidation phase within an uptrend," said Mishra.

It has also established a fresh buying pivot by moving above its previous swing high, supported by strong volumes, which indicates clear buyer participation.

In addition, a bullish crossover on the weekly RSI further strengthens the momentum outlook.

"Considering the favourable technical setup, traders may consider initiating long positions in IOC within the specified range," said Mishra.

Indus Towers has witnessed a decisive breakout from a triangle consolidation pattern, signalling continuation of the prevailing uptrend.

The emergence of a buying pivot near the breakout neckline points to strong accumulation and improves the likelihood of further upside.

"With prices comfortably above positively aligned short- and long-term moving averages, the technical structure offers a favourable risk–reward setup for fresh long positions," said Mishra.

After a prolonged corrective phase, REC has tested and held its key long-term support at the 200-week EMA, indicating waning selling pressure.

On the weekly timeframe, the stock has formed a stable base within the ₹350–390 range, suggesting accumulation.

"Improving price action and a constructive broader structure point to limited downside and a potential upside move, making it an attractive long opportunity," said Mishra.

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stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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