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Stocks to buy for the short term: The Indian stock market ended in the positive territory for the third consecutive session on Thursday, January 29, as the Economic Survey's projection of the Indian economy staying on a strong footing, expected to grow by about 7% in FY27, underpinned sentiment, even as geopolitical uncertainties persisted.

The Sensex closed 222 points, or 0.27%, higher at 82,566.37, while the Nifty 50 settled at 25,418.90, rising by 76 points, or 0.30%.

Tata Steel, Larsen & Toubro (L&T), and Axis Bank ended as the top gainers in the Nifty 50 index.

Among the sectors, Nifty Metal index jumped 3%, while Nifty Bank, Private Bank, Realty, and Financial Services rose by up to a per cent.

The focus now is on the Union Budget on Sunday, February 1, even as global cues will also remain under the market's radar.

On the technical front, the Nifty continues to hover around the long-term moving average- the 200 DEMA.

Ajit Mishra, SVP of Research at Religare Broking, observed that having crossed the immediate hurdle around 25,350, the Nifty 50 now appears poised to inch towards 25,600.

He, however, cautions that market participants should avoid getting carried away by the recovery.

"Participants should remain selective, focusing on performing sectors and themes while keeping position sizes in check amid lingering geopolitical uncertainty and the approaching Union Budget," said Mishra.

Mishra highlighted that BSE maintains a strong and structurally sound technical setup, with prices firmly sustaining above a rising long-term moving average, confirming the continuation of the primary uptrend.

The recent breakout from a downward-sloping consolidation after a corrective phase suggests healthy consolidation and profit-taking rather than any sign of trend exhaustion.

A decisive rebound from a clearly defined support zone, accompanied by improved volumes, points to fresh accumulation by stronger hands.

Momentum indicators are steadily improving, indicating growing upside momentum.

The overall price structure reflects persistent buying interest on declines, reinforcing the positive bias.

"Considering the favourable risk–reward dynamics, the stock appears well placed for further upside, making current levels suitable for initiating or adding long positions with well-defined downside risk," said Mishra.

Mishra highlighted that the metal pack is witnessing strong traction and Tata Steel is trading in tandem with the move.

After breaking out of a consolidation range, it is inching gradually higher while holding well above its rising short- and medium-term moving averages, reflecting strong, accelerating momentum.

The recent breakout, marked by wide-range candles and a noticeable pickup in volumes, signals sustained buying interest, likely from stronger hands.

"Corrective moves have been shallow, highlighting persistent demand near support levels. As long as the stock holds above its key averages and trend supports, the technical structure continues to support further upside," said Mishra.

As per Mishra, Ramco Cements continues to reflect a healthy bullish setup, with the stock moving within a well-defined rising channel on the daily chart.

After spending considerable time consolidating, prices have decisively moved higher and are now comfortably above key moving averages, pointing to improving trend strength.

The rebound from the 61.8% retracement of the March–July rally underscores the stock’s underlying resilience. Volume expansion on the breakout indicates genuine accumulation rather than short-term positioning.

"With prices respecting ascending support zones, the broader bias remains constructive, suggesting the uptrend is likely to extend over the medium term," 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 the expert, 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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