Stock market investments might be dangerous in India, but the stock market can be a source of income for most skilled traders. Moreover, the greatest short-term stocks might pay off handsomely.
Short-term stocks appeal to many investors who lack patience and, rally on their aims and disposable resources, are enticing to trade in India.
Short-term stocks can be a viable investment option if individuals stay focused on their goals and work diligently to achieve them.
How do Short-term Stocks Work in India?
Senior stock market players nearly always put their money on companies whose equities are expected to outperform in the long run.
Short-term stocks can be purchased over a short period of time, buying while prices are low and accumulating more when they become eventually rewarding Short-term stocks.
Experienced traders will also agree that the top short-term stocks play an important role in the investment portfolios of certain Indian investors.
For example, every major trading portal will feature top recommendations of short-term stocks that guarantee high returns. Short-term equities and commodities are those you buy today intending to sell in three to twelve months.
These are beneficial since they provide your financial portfolio a boost in the short term. In addition, they provide you with consistent results in a short period of time.
Furthermore, by complementing your existing holdings, these equities add value. Short-term equities and commodities can provide good returns, which you can use to reinvest in higher-yielding long-term stocks.
List of the Best Short-term Stocks to Buy
The analysts projected a short-term rise in demand far into the future, creating unrealistic expectations. That has now been reversed. Frothy valuations are settling down, and possibilities are beginning to surface.
Even the highest-quality short-term equities are dramatically trading down in India, and some of the smaller and less known growth companies are experiencing astonishing drops. Nevertheless, here are ten of the greatest growth Short-term stocks to buy in India now that could still provide significant gains.
Polyplex
Target: Rs 2,250
The stock has been trending upwards. It’s been moving in an upward channel. It has reversed from the rising channel’s lower band.
We’ve seen indicators like MACD and RSI indicating that the stock’s positive trend will continue. Therefore, Polyplex should be purchased above Rs 2,160 with a goal of Rs 2,250. A stop loss of Rs 1,950 is recommended for investors.
BPCL
Target: Rs 390
The stock has produced a double bottom pattern after a brief decline. The stock successfully crossed the Rs 355 resistance and closed above it, indicating a broadly positive trend.
Furthermore, it has established a good range breakout formation and a bullish candle on daily charts, implying a continuation of the uptrend from current levels. With a goal of Rs 390 and a stop loss of Rs 345, buy.
Prestige Estates
Target: Rs 550
The stock has been continuously increasing in value. We can observe that the stock has reversed from the 200-EMA support levels.
We’ve seen indicators like MACD and RSI indicating that the stock’s positive trend will continue. Therefore, a buy over Rs 450 with a target of Rs 550 and a stop loss of Rs 385 is recommended.
Chambal Fertilisers
Target: Rs 455
It has created a long bullish candle on weekly charts, implying a short-term rise. In addition, the stock has created a breakout continuation shape on the daily and intraday time periods.
If the stock can trade over Rs 405 in the short term, the texture of the pattern suggests that the uptrend will continue. The immediate support level for swing traders would be Rs 405; trading above this level, the stock might see a continuation wave up to Rs 455.
Uflex
Target: Rs 650
The stock has reversed after testing previous support levels, and we can see that it has also taken the 200-EMA support levels.
We’ve seen indicators like MACD and RSI indicating that the stock’s positive trend will continue. Therefore, a buy above Rs 550 with a target of Rs 650 and a stop loss of Rs 475 is recommended.
HCL Tech
Target: Rs 1,280
The stock found support near its 200-day SMA after a brief price pullback. A daily chart has produced a higher bottom pattern that is broadly favorable following the correction.
Positional traders can maintain a bullish approach and seek a goal of Rs 1,280 unless it trades below Rs 1,150. With a stop loss below Rs 1,150, fresh buying can be considered now and on any dips between Rs 1,200 and Rs 1,180.
Century Plyboards
Target: Rs 725
After months of range-bound movement, the stock price experienced a dramatic upside breakthrough on Tuesday near Rs 620 levels and closed higher. This might also be thought of as an upward breakout of a triangular formation.
This is a positive sign, and the additional upside is likely in the near future. In addition, the weekly 14 periods RSI moved above the upper 60 levels, and volume increased sharply during the stock price’s bullish breakout.
As a result, the stock price may continue to increase its upward momentum. Begin buying at the CMP (Rs 659.80), increase your position on declines to Rs 635, and wait for the upside goal of Rs 725 in the next 3-4 weeks. Place a Rs 615 stop-loss order.
NMDC
Target: Rs 165
As per the news, this stock began heading upwards on Friday after enduring a decent price adjustment. It broke out of the ‘Bullish Pennant’ pattern on the daily chart.
The stock has the potential to perform strongly due to high volume and good momentum oscillators. This stock can be purchased for Rs 165 as a trading target. Stop-loss should be set at Rs 152.60 as per details.
Granules India
Target: Rs 322
A ‘1-2-3’ pattern with at least double the normal daily transactions can be seen with details on the daily chart. Furthermore, stock prices have closed above their important short-term moving averages.
As a result, the stock could experience catch-up bounce alerts to its larger peers. Investors should consider buying on a dip of approximately Rs 305 for a goal of Rs 322. A stop loss of Rs 294 can be used.
Gujarat Heavy Chemicals
Target: Rs 650
The stock just broke out of its range and reached a high of Rs 499.45 on a strong transaction. The KST, Aroon Up/Down, and ADX Indicators all point to an uptrend.
The 200-DMA is constantly increasing. Rs 650 is a possible aim to transfer. The buy levels are Rs 464-395 if the stock price corrects lower. The trade’s stop loss should be set at Rs 365.
Spandana Sphoorty
Target: Rs 415
This stock’s severe downward trend appears to be reverting upward in recent months. Last week, we saw a double bottom type formation around Rs 323 levels, followed by an up move this week.
The RSI patterns indicate that the stock price will continue to rise. Buy at the current market price (Rs 374.70), add more on falls to Rs 360, and hold for the upside objective of Rs 415 in the next 3-4 weeks. Set your stop loss at Rs 348.
Maithan Alloys
Target: Rs 1,600
This brand stock just broke out of its range and reached a high of Rs 1,300 on strong volume. The 200-DMA has been steadily climbing since August 21, and the price has always relied on it for support.
Rs 1,600 is a possible aim. The buy levels are Rs 1,169-920 if the stock price corrects lower. The stop-loss in this trade should be Rs 875.
Dixon Tech
Target: Rs 4,580
In recent months, Dixon Tech Ltd has experienced a price-wise decline, similar to the larger markets, and prices have reached their long-term support zone.
A bullish crossover from the oversold zone of the RSI-smoothened oscillator has signaled a change in momentum. Traders might buy in the area of Rs 4,285-4,275 with a potential objective of Rs 4,580 in the next 1-2 weeks if they trade with a positive bias.
Gujarat Ambuja Exports
Target: Rs 450
The stock recently produced range breakouts and achieved a high of Rs 244 with a supporting transaction after correcting to Rs 151. The breaks took place above the trend line from April 2018 to March 22.
Rs 450 is a possible aim. The buy levels are Rs 225-188 if the stock price corrects lower. The stop loss should be Rs 167.
Adani Transmission
Target: Rs 3,000
The fact that Adani Transmission ltd. has broken out of a bullish ascending triangle pattern is an intriguing feature dealing. This trend lasts around six months. As a result, Adani Transmission ltd may be on the approach of a major trending action.
A strong uptrend could emerge from this pattern breakthrough because it is a positive breakout. Over the next 6-8 weeks, buy securities for an upside target of Rs 2,900-3,000. Maintain a stop below Rs 1,960 and hold the position.
Polycab India
Target: Rs 3,000
The price is currently trading in a lower trading range, which is a bullish development because the price is at a support level. Price movement at the bottom of the price structure has shown hints of a resurgence in the recent several days.
We’ve seen a sequence of bullish candlestick formations in the last several days. MACD has switched to a buy mode account through the browser. Over the following 6-8 weeks, the price can rebound towards Rs 2,800 and then to Rs 3,000.
Which Factors Make a Good Short-Term Investment?
Good short-term stocks have a lot in common, but they invariably share three characteristics:
- Stability: Many stocks and bonds fluctuate in value, but good short-term investments do not. The funds will be available when you need them, and they are frequently safeguarded by FDIC insurance accounts or government guarantees support.
- Liquidity: A solid investment usually has high liquidity, which means you can get your money back soon.
- Low Transactions Cost: This is especially true now that investment yields are at historic lows.
These features indicate that your money will not be in danger and will be there when you need it, which is one of the most compelling reasons to invest in the short term.
Tips to Invest in Short-term Stocks?
If you’re investing for a year or less, you should use a different strategy than if you’re investing for decades. Instead, use the following guidelines to approach short-term investing:
- Establish your goals: It’s critical to set realistic expectations because these investments indicate smaller potential returns than long-term investments.
- Prioritizing safety: Generally, you should prioritize safety over return while investing for the near term.
- Risk Management: A small increase in profit may not be worth the additional risk. With these investments earning so little, it’s tempting to gain a higher return by taking on more risk.
- Choose an investment that meets your requirements: You might be able to earn a few more dollars on that CD, but what if you need the money before it matures?
Conclusion
Short-term stocks investment reduces risk but at the expense of the possible higher profits offered by the finest investments. Instead of squandering money on a potentially risky investment, you’ll ensure that you have cash when you need it.
The most critical factor to consider while making investment decisions is safety. So, start investing in short-term stocks with a legit Indian brokerage firm like InvestBy. With this brokerage firm, Investors can buy short-term stocks outside India also.
