Largecap PSU & midcap stocks to buy for short term for up to 12% return; note down targets

Stocks to buy for short term: The stock market saw a volatile week, with benchmark indices swinging sharply in response to global cues and domestic policy developments.

After a shaky start, both Nifty and Bank Nifty rebounded, riding on the back of easing global trade tensions and supportive monetary policy.

On Thursday, April 17, 2025, the 50-scrip basket managed to recover most of its losses, closing higher at 23,851.65, up 1.77 per cent. While, the Sensex index ended almost 2 per cent up, or over 1500 points to 78,553.

The rally has been led by performances in the banking, auto, and realty sector stocks.

Will this rally continue, or investors/traders have to face dip?

Going forward, analysts at Bajaj Broking expect that Nifty to maintain its upward trajectory, targeting levels of 23,600 and 23,860 in the coming sessions. However, volatility is likely to persist amid ongoing tariff negotiations and the unfolding Q4 earnings season.

The positive outlook holds as long as the index stays above 23,207 — a breach of which may trigger a temporary consolidation between 22,700 and 23,300.

Bank Nifty outpaces the headline index

Bank Nifty has outperformed the broader market, rallying 4 per cent in the week and breaching its March high of 52,064. Analysts note a sharp recovery, with the index reclaiming nine days of losses in just four trading sessions — a sign of structural strength.

Technically, the banking index continues to show resilience, building on last month’s bullish breakout and maintaining strong upward momentum, Bajaj Broking analysts said, adding that the index is now eyeing the 53,700–53,900 zone, driven by follow-through buying. A breach below the recent breakout level of 52,000 may lead to short-term consolidation between 51,000 and 52,000, though the bias remains firmly positive.

Analysts recommend two stocks for short term; check out targets

The brokerage has recommended buying two largecap and midcap stocks with a horizon of 3 months. Here is the list of these two stocks:

PSU Shares to Buy: PNB | Entry Price: Rs 97–99 | Upside Potential: 11%

Analysts have recommended buying PSU Punjab National Bank (PNB) shares for a three-month target of Rs 111 with a stop loss at Rs 92, citing the stock has generated a breakout above falling supply line from its May 2024 highs and closed above its 50-day EMA. The given target implies a return of 11.69 per cent from Thursday's closing.

"The daily RSI has also triggered a bullish crossover, suggesting further upside towards ₹111, which corresponds to the 50% retracement level of its previous downtrend," according to Bajaj Broking.

Midcap Shares to Buy: Sterling and Wilson Renewable Energy | Range: Rs 276–283 | Expected Return: 12%

Another pick of the brokerage is from the midcap category. It recommends buying the Sterling and Wilson Renewable Energy stock for the same period for a target of Rs 326 with a stop loss at Rs 249. According to the brokerage, the midcap stock could rise up to 12.22 per cent in the next 3 months.

"Sterling and Wilson Renewable Energy has formed a bullish double bottom breakout on the daily chart, backed by strong RSI momentum and support from its 20-day EMA near Rs 255," according to the brokerage.

"The stock is expected to climb toward Rs 326, the projected target based on the double bottom’s measuring implication," analysts said.

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)