The benchmark indices showed a smart recovery, trading moderately lower, after the Union Budget met street expectations on July 23. Experts advised focusing on the 24,200-24,000 levels on the downside for the Nifty 50, and 24,850-25,000 on the higher side, while continuing with a buy-on-dips strategy. Here are the top budget-sensitive stocks to bet on and their levels to watch:
Ashish Kyal, CMT, Author Founder and CEO of Waves Strategy Advisors
REC | CMP: Rs 618.8
REC shows a bullish trend with prices above the Ichimoku Cloud. The Relative Strength Index (RSI) indicates positive momentum as it is reversing back from near 50 levels. Long positions can be created with a stop-loss at Rs 580 and target levels at Rs 660, which is near the upper end of the channel.
Strategy: Buy
Target: Rs 660
Stop-Loss: Rs 580
Petronet LNG | CMP: Rs 341.35
Petronet LNG, a leading player in the LNG infrastructure sector, has shown a bullish trend, with a strong support level at Rs 330. The RSI indicates bullish momentum, and the Moving Average Convergence Divergence (MACD) suggests a buy signal. The stock also bounced back from the 20-day moving average support. A break above Rs 344 will indicate a buy for a move towards Rs 364, with a stop-loss near Rs 330 levels.
Strategy: Buy
Target: Rs 364
Stop-Loss: Rs 330
Bharat Dynamics | CMP: Rs 1,493.75
BDL is exhibiting a strong bullish trend, with a recent bounce back above the 50-day moving average (MA). BDL has completed wave 4 and can start wave 5 on the higher side, which can take prices to the previous high near Rs 1,720 levels. We recommend a buy position with a stop-loss at Rs 1,380 (recent swing low) and target levels at Rs 1,720. The long-term trend is turning bullish, with the 20-day MA above the 50-day MA, providing additional upside momentum.
Strategy: Buy
Target: Rs 1,550, Rs 1,720
Stop-Loss: Rs 1,380
Anshul Jain, Head of Research at Lakshmishree Investments & Securities
Hindustan Unilever | CMP: Rs 2,735.3
Hindustan Unilever (HUL) is showcasing a robust 150-week long Cup and Handle pattern on its weekly charts, with a critical neckline at Rs 2,680. During the base formation, volumes remained subdued, but the subsequent rally to the neckline has witnessed substantial volumes, indicating broad-based participation by smart money. Given the positive budget outlook for FMCG companies, HUL emerges as an attractive buy opportunity at Rs 2,750, with a stop-loss set below Rs 2,650 and an ambitious target of Rs 3,000+. The strong technical setup, coupled with favorable macroeconomic factors, positions HUL as a compelling choice for investors looking for growth in the FMCG sector. This setup highlights the stock's potential for significant upside in the coming months.
Strategy: Buy
Target: Rs 3,000
Stop-Loss: Rs 2,650
Apex Frozen Foods | CMP: Rs 251.25
The upcoming budget is anticipated to emphasize frozen food and logistics sectors, positioning Apex Frozen Foods as a significant beneficiary. Technically, Apex Frozen has formed a 68-week-long Double Bottom pattern with the right bottom emerging on extremely dried-up volumes, indicating strong accumulation. This pattern typically suggests a reversal and a potential uptrend. The stock presents an attractive buy opportunity at the current market price of Rs 251, with an immediate stop-loss on a close below Rs 220. With the budget likely to focus on these sectors, Apex Frozen Foods could see a substantial upside, targeting Rs 345. Investors should keep an eye on this stock for a promising breakout in the near term.
Strategy: Buy
Target: Rs 345
Stop-Loss: Rs 220
Snowman Logistics | CMP: Rs 74.37
The upcoming budget is anticipated to heavily emphasize the logistics sector, making Snowman Logistics a standout contender for potential gains. Snowman Logistics is displaying exceptional technical strength, with a 19-week-long Cup and Handle pattern forming on the weekly charts. This classic bullish pattern is backed by volume dynamics—volumes remained subdued during the Cup formation but surged significantly as the stock approached the Handle's neckline. This suggests strong buying interest and accumulation. Given the stock's current market price of Rs 74, investors can consider buying with a stop-loss at Rs 65 and a target of Rs 90. With the expected budget boost to logistics, Snowman Logistics is well-positioned for substantial returns.
Strategy: Buy
Target: Rs 90
Stop-Loss: Rs 65
Navkar Corporation | CMP: Rs 137.58
The upcoming budget is expected to be highly favourable for Navkar Corporation, and the stock's technicals are aligning perfectly with this outlook. Navkar Corp has broken out of a bullish 25-week-long Cup and Handle pattern on the weekly chart, which is a classic indicator of a strong upward trend. The breakout has been accompanied by significant follow-through on substantial volumes, reinforcing the bullish sentiment. This volume surge during the breakout phase signals robust buying interest and institutional accumulation. Currently trading at Rs 137.58, Navkar Corp presents a compelling buy opportunity with a stop-loss below Rs 115. The immediate target for this trade setup is Rs 225, making it a potential high-reward investment in light of the positive budget expectations.
Strategy: Buy
Target: Rs 225
Stop-Loss: Rs 115
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Tata Steel | CMP: Rs 160.32
Recently, Tata Steel experienced a significant decline, dropping nearly 22 rupees after forming a Double Top at Rs 180 level. This decline equates to a 12 percent fall, reflecting considerable selling pressure. However, the stock found support around its 150-day Exponential Moving Average (DEMA), indicating a potential stabilization point. On the indicator front, the daily Relative Strength Index (RSI) has formed an impulsive structure near the 30 oversold zone, which appears attractive at current levels. Therefore, we advise buying Tata Steel in the Rs 158-162 zone, with a target of Rs 175 and a stop-loss of Rs 153 on a daily close basis.
Strategy: Buy
Target: Rs 175
Stop-Loss: Rs 153
Chemplast Sanmar | CMP: Rs 528.85
Recently, Chemplast Sanmar has been in a corrective phase. However, in the previous trading session, it found support at its previous breakout upper band, accompanied by significant volume. Additionally, the daily RSI has reversed from the 50 level on a daily scale, further affirming our bullish stance on the stock. Therefore, we recommend going long in the Rs 520-530 zone, with a target of Rs 600 and a stop-loss placed near Rs 488 on a daily close basis.
Strategy: Buy
Target: Rs 600
Stop-Loss: Rs 488
Hikal | CMP: Rs 342.55
During the past few weeks, Hikal has been in a corrective phase, experiencing a downward adjustment in its price. However, in the previous trading session, the stock found support at the upper band of its previous breakout level, a crucial technical indicator suggesting potential stabilization. This support was further validated by the formation of a Bullish Piercing candlestick pattern, a reliable signal of a possible trend reversal. Additionally, the daily RSI, a momentum oscillator, has reversed from the 50 level on a daily scale, indicating renewed buying interest and further affirming our bullish outlook on the stock. Given these technical indicators, we recommend initiating a long position in the Rs 335-345 zone, with an upside target of Rs 390 and a stop-loss set at Rs 315 on a daily close basis to manage risk.
Strategy: Buy
Target: Rs 390
Stop-Loss: Rs 315
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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