ITC, Bharat Dynamics, Chola Financial Holdings: 3 stocks to buy for short-term gains

Indian stock markets have been witnessing profit booking lately, jittering investors and scraping opportunities to make smart money. However, select brokerage firms including BP Wealth and SMC Global Securities have suggested three technically strong stocks including ITC, Bharat Dynamics (BDL) and Cholamandalam Financial Holdings for decent upside potential. Here's what brokerage firms say about these stocks:
 

Cholamandalam Financial Holdings | Buy | Target Price: Rs 2,200-2,225 | Stop Loss: Rs 1,875

CFHL has registered a sharp breakout on daily charts, signaling a strong bullish reversal. The stock has successfully broken out of a symmetrical triangle pattern, after a period of consolidation. Prices surged past the Rs 1,950 resistance zone with robust volumes, confirming renewed buying interest. The breakout also coincides with the larger volumes and positive divergences on secondary oscillators which points towards strength in current trend. With this pattern breakout, the stock now looks poised to next swing highs in the near term, with immediate support placed around Rs 1,880. Overall sentiment remains strongly positive. Therefore, one can accumulate a stock on dips in range of Rs 1,980-2,000 levels with the expected upside of Rs 2,200-2,225 levels with stop loss below Rs 1,875 levels.

Recommended by: SMC Global Securities

 

Bharat Dynamics | Buy | Target Price: Rs 1,535-1,545 | Stop Loss: Rs 1,460

BDL has taken strong support in the Rs 1,500-1,525 range. This is a solid buying zone where the price has bounced from before, so a good base has been formed. During the recent price drop, the selling volumes were very low. This is a good sign. It means big players were not selling, and the fall was just a small correction. The price is currently testing its 200-day and 50-day moving averages. If it climbs above these averages, the up move will become very fast. The MACD has given a fresh buy crossover. This is an early signal that the down trend is getting weaker and a new up trend is ready to begin. The RSI is in the middle-zone. It is not in the overbought zone, which means there is plenty of room for the stock to go up from here. The stock is currently just below its 20-DMA. If the price breaks out and sustains above Rs 1,568, it can achieve our target of Rs 1,675. A decisive close below the Rs 1,460 support level will negate this bullish view.

Recommended by: BP Wealth

 

ITC | Buy | Target Price: Rs 439-441 | Stop Loss: Rs 400

ITC has shown signs of a potential turnaround on the daily charts after an extended consolidation phase. The stock has broken above a descending trend line that had been capping prices for several months, signaling the early stages of a trend reversal. This breakout, supported by moderate volumes, indicates renewed buying interest after a prolonged corrective move. The RSI has moved above 55, reflecting improving momentum, while the MACD has turned positive, suggesting a shift in sentiment toward the bulls. Technically, sustaining above Rs 415 could open the door for a short-term rally toward Rs 435–440 levels. On the downside, support is now placed near Rs 405. Therefore, one can accumulate the stock in range of 415-417 for the expected upside of Rs 439-441 levels with stop loss below Rs 400 levels.

Recommended by: SMC Global Securities