The reason people invest in the stock market is simple: they seek profits. When someone buys stocks, the goal is to be able to trade in a way that reaps profits. The rationale is that the stock market is unpredictable and it is never possible to know how the stocks are going to perform on a particular day or week or month. With uncertainty, risks are associated. With risks, there is the possibility of rewards. The higher the risk you take, the higher are the chances of reaping rewards in the form of trade profits.
Usually, people invest in the stock market for the long run. It is hoped that long-term commitment will be a foolproof way to profits. However, if the investment is made in strong companies, then the investor can prepare to receive solid returns.
Here are a few stock ideas that investors can consider if they are keen to invest for a short-term:
Tata Consultancy Services (TCS)
Who hasn’t heard of Tata Consultancy Services (TCS), the subsidiary of Tata Group? The shares of this information technology service and consulting company have been consolidating if you consider the performance of the past year.
Currently, the status quo looks bullish. Consider this: the stock crossed its 200-day EMA. TCS recently also secured a $1.5 billion deal from Walgreens and bagged a deal from retail major Coop Sweden. In light of these developments, the stock shows a lot of promise. It would be advisable to amass the stock at Es 2,287 as the target price.
Castrol, the automotive and industrial lubricant manufacturing company has the largest share in the market in which it operates. But its performance goes beyond just the product it offers. The stock of the company also recently witnessed a fresh breakout. Under the best circumstances, which means that if the price stabilised above Rs 140, then you can also expect it to inch closer to Rs 152.
Another stock that has been consistently consolidating is the IDBI Bank. The Budget announcement has further strengthened the stock performance. It is predicted to have a breakout, so in view of this breakout, buy the stock now at a target price of Rs 44 and Stop Loss of Rs 33.
Reliance Industries Limited (RIL)
Of course, Reliance Industries Limited needs no introduction. This conglomerate spans across sectors like energy, petrochemicals, textiles, natural resources, retail, and telecommunications. The stocks are always strong, nestled in an upwards trend. The stock is also seen to have undergone the pivotal price correction in a timely manner. This price correction last happened in the previous month. So it is a safe bet to buy the stock at the current level, and the recommended target price is Rs 1,455 with a stop loss at Rs 1,345.
Kotak Mahindra Bank
Another robust player in the banking sector, Kotak Mahindra Bank recently rose from its short-term low of Rs 1,575. This is a good indication, along with other parameters which throw a positive light on the short-term future of the stock. It is likely to recover and return. The current price is within 6.0% of its two-year high of 1734.8 that it touched on 19th December 2019.
The stock of this Indian multinational information technology service and consulting company is a good candidate for your consideration, too. The highs and even the lows of the stock are at a better position on the daily chart. The stock is trading above 200SMA which is a positive indication of the upward trend.
Hindustan Unilever Limited (HUL)
The stock of this consumer goods company is also on the radar for the short-term investor. There is a strong indication of an upward move in the near future. Now would be a good time to buy the stock for a target price of Rs 2,200 and stop loss of Rs 2,020.
Mahindra & Mahindra
Mahindra & Mahindra is an Indian multinational car manufacturing corporation whose shares will catch the eye of any short-term investor. When you reach rock bottom, what is anticipated will happen next? That you will rise from it like a phoenix. This stock has been through a lot of ups and downs and it is expected that it will see upward momentum. It is recommended to buy it at a target price of Rs 580 and stop loss of Rs 520.
In the short run, the trends of the stocks may not be strong enough to make a good case for market investments. However, the hack for short-term investment is that you should target strong companies. For instance, in the current scenario, you will see that the strong companies are between 11,350 -11,500 levels on Nifty. Investors with a short-term perspective will always have some options available to them.