Stocks to buy: IndusInd Bank, DLF, Muthoot among top picks for short-term gains

Amid the recovery in the Indian benchmark indices, domestic brokerage firm SMC Global Securites has suggest four stocks including IndusInd Bank Ltd, DLF, Sona BLW Precision Forging and Muthoot Finance Ltd to trade for short-term gains. The former two are based on strong technical parameters, while latter two are picked based on sound fundamentals. Here's what the brokerage firm has to say on these stocks:  

IndusInd Bank | Buy | Target Price: Rs 1,065-1,075 | Stop Loss: Rs 900 IndusInd Bank has staged a sharp V-shaped recovery from its recent lows and is now seen consolidating within a well-defined range since last few weeks. This sideways phase appears to be a healthy base-building process rather than a sign of weakness, reflecting steady accumulation after the strong rebound. The stock continues to hold above its long-term moving average, while momentum indicators remain constructive, with the RSI improving and the MACD sustaining a positive crossover. A decisive breakout last week above the consolidation zone confirms the next leg of the uptrend and as fresh buying interest can be attracted. Therefore, one can accumulate a stock in range of Rs 960-970 levels with the expected upside of Rs 1,065-1,075 levels with stop loss below Rs 900 levels.

DLF | Buy | Target Price: Rs 795-800 | Stop Loss: Rs 600 DLF Ltd appears to have confirmed a bullish breakout from a multi-month symmetrical triangle on the weekly chart, signalling a potential shift in the medium-term trend. After a prolonged phase of lower highs and higher lows, the stock has moved decisively above the pattern resistance, indicating renewed buying interest. The breakout is further supported by the price holding above its long-term moving average, while both RSI and MACD are turning constructive, reflecting improving momentum. If the stock sustains above the breakout zone in the coming weeks, it could pave the way for an extended uptrend. However, a successful retest of the breakout level would further strengthen the bullish structure and improve confidence in the continuation of the move. Therefore, one accumulate a stock on dips in range of Rs 665-670 levels the expected upside of Rs 795-800 levels with stop loss below Rs 600 levels.  

Muthoot Finance | Buy | Target Price: Rs 3,654 | Upside Potential: 22% Muthoot Finance is India's largest gold loan company and is classified as an upper layer NBFC by the RBI. It operates in the business of providing loans against the pledge of household gold jewelry. Beyond its core gold loan portfolio, it has diversified into multiple financial verticals through its specialized subsidiaries, including Muthoot Homefin for affordable housing finance, Belstar Microfinance for micro-lending, and Muthoot Money for retail loans. Muthoot Finance continues to show robust fundamental health, supported by category leadership and the structural shifting of the unorganized gold loan marketinto formal credit systems. With its strong domestic credit ratings, the company retains excellent funding access and competitive resource-raising capabilities. The successful growth of its non-gold subsidiaries, combined with high operational margins and defensive collateral standards, positions Muthoot Finance well for sustained long-term capital compounding. Thus, it is expected that the stock may see a price target of Rs 3,654 in 8 to 10 months time frame.

Sona BLW Precision Forging | Buy | Target Price: Rs 803 | Upside Potential: 22% Sona BLW Precision Forging Ltd is a leading automotive technology company specializing in precision-forged components, differential systems, traction motors and motor control units for global OEMs. With strong EV drivetrain capabilities and expansion into railways, radar and robotics, the company is evolving into a diversified mobility technology leader. It continues to remain one of India's highest-quality auto component companies, supported by its strong technology portfolio, global customer relationships, leadership in electric drivetrain components and robust order book of Rs. 23,700 crore. While near-term margin pressure from commodity inflation and wage increases may persist, its diversified exposure across EVs, hybrids, conventional drivetrains, railways and advanced mobility technologies provides multiple long-term growth engines. Thus, it is expected that the stock may see a price target of Rs 803 in 8 to 10 months timeframe