Best Stocks to Buy in India for Short Term in February 2022
Best stocks to buy in India for Short Term in February 2022: Indian equity markets have corrected consecutively for the second week in a row. Indian markets were quite volatile due to global cues. The market will remain volatile in the coming week also due to Union Budget, Economic data, and Global cues.
In the last 10 days, the Nifty IT has corrected quite well from the peak and is currently near the support zone in the daily chart. This indicates a reversal pattern and hence we anticipate an upward movement in IT stocks in the coming days. The RSI indicator has also shown a trend reversal for IT stocks.
We have selected two IT stocks that look attractive in the coming days. Our third recommendation is from the NBFC sector, the stock is selected based on its superb Q3 results and also corrected almost 16% after its results.
The 3 best stocks to buy in India for short-term in February 2022 for a good return.
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Birlasoft Ltd
Birlasoft Ltd formerly known as KPIT Technologies provides software development, global IT consulting, and product engineering solutions to its clients predominantly in automotive and transportation, manufacturing, and energy utility verticals. It’s a low-debt company trading at a price of Rs 444.75 per share as of 28 January 2022
Fundamentally, the company is strong, it has declared positive results for the last eight consecutive quarters. In the last year, the stock has given a return of 77.8%, its profits have risen by 47.8%, PEG ratio is 0.6%, indicating the stock is fairly priced at its current valuation.
Technically, the stock is in a mildly bullish range, the indicators like MACD, KST DOW, and OBV are bullish. The Birlasoft share price has corrected around 24% in the recent IT sectors correction. We feel that there will be a trend reversal in IT stocks in the coming days.
You can BUY the stock at the current price of Rs 444.75 for the short term target of Rs 550-580 with a stop loss at Rs 395
2. Infosys Ltd
Our next stocks to buy in India for short-term in February 2022 is also from the IT sector. As the indicators are showing a trend reversal in the IT index, we have selected Infosys as our second choice. Infosys is a global technology services firm that delivers information technology (IT) business solutions to its clients. Infosys is a low debt to equity ratio company with strong long-term fundamental strength. The share price of Infosys has closed at 1685.25 per share on 28 January 2022.
Fundamentally, the company has given positive results for the last three consecutive quarters. The share price of Infosys has given 32.04% return in the last year. There is a strong trend reversal seen as the stock gained after 7 consecutive falls in the last trading day with high delivery volume.
Technically the stock has entered from Bullish trend to mildly bullish trend on 21 January 2022. The technical indicators like MACD, KST, DOW, and OBV are showing bullish indications. The share price of Infosys has corrected around 14% in the last 10 days and we feel the trend will reverse now.
We recommend you to Buy the stock at the current market price of Rs 1685.80 for the short-term target of Rs 1850-1930 with a stop loss of Rs 1600.
3. Bajaj Finance Ltd
Our next stock to buy in India for the short-term in February 2022 is Bajaj Finance, a leading Non-Banking Financial Company (NBFC) in India. The share price of Bajaj Finance was closed at Rs 6870.50 last Friday, 28 January 2022.
Fundamentally the company is strong as it posted healthy long-term growth, Net Sales have grown by an annual rate of 21.45% and Operating profit at 15.06%. The company has declared a better than expected Dec 2021 ended result, with 85.46% growth in Net Profit.
Technically, the stock entered from bullish to mildly bullish zone on 24 January and corrected around 16% in the last 10 days. The delivery volume of the stock has increased in the last trading day. Several technical indicators are also showing the stock is ready to enter into bullish territory again.
We recommend you to Buy the stock at CMP Rs 6870.50 for the short term target of Rs 8130 with a stop loss of Rs 6500
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