Market experts expect Finance Minister Nirmala Sitharaman to focus on continuity in capital expenditure towards infrastructure, new tax regime, fiscal consolidation path and GDP growth numbers in the Budget 2024, especially ahead of general elections.
The market clocked nearly one percent gains on January 31, and broader markets rallied more than 1.5 percent ahead of the budget day, thanks to banking stocks. Nifty 50 recouped almost all its previous day's gains in the rebound.
On January 31, the BSE Sensex climbed over 600 points to 71,752, and the Nifty 50 jumped over 200 points to 21,726, while the Nifty Midcap 100 and Smallcap 100 indices gained 1.6 percent and 2.25 percent respectively.
Moneycontrol collated a list of Budget stocks picks from experts with 3-4 weeks perspective. The closing price of January 31 is considered for stock return calculation.
Expert: Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Petronet LNG: Buy | LTP: Rs 269 | Stop-Loss: Rs 235 | Target: Rs 320 | Return: 19 percent
Since 2019 until 2023, Rs 240 levels have proved to be massive resistance. Fortunately, in January 2024, the said counter managed to clear its Rs 240 resistance very comfortably and is currently placed near Rs 270 zone.
The breakout on the monthly chart looks genuine since it is accompanied by huge volume, with respective stochastics reversing from the 40 zone, which is looking lucrative at current levels.
Thus, investors and traders can enter longs in the zone of Rs 255–270 with an upside target of Rs 320 and a stop-loss of Rs 235 on a daily closing basis.
KPR Mill: Buy | LTP: Rs 790 | Stop-Loss: Rs 749 | Target: Rs 860 | Return: 9 percent
After making the top near Rs 928 on November 22, 2023, the said counter gave a decent correction until Rs 732. In the previous trading session, it bounced back from the support zone of Rs 730, coincidentally, which is between 100 and 200 DEMA (day exponential moving average), and in the process, it also took out its bearish trendline (refer to the chart), thus making it attractive at current levels.
On the indicator front, daily stochastics has given a bull divergence (refer to the chart), which further confirms our bullish stance on the counter. Thus, one can buy in the zone of Rs 780–795 with an upside target of Rs 860 and stop-loss orders would be placed on a daily closing basis around Rs 749.
Maruti Suzuki India: Buy | LTP: Rs 10,187 | Stop-Loss: Rs 9,650 | Target: Rs 11,000 | Return: 8 percent
After breaking down the psychological level of Rs 10,000 in the month of August 2023, the counter has retested Rs 10,000 again and reversed from that level, which confirms that the August 2023 breakout above Rs 10,000 was genuine. Also, volume was huge at the time of the reversal, which further confirms our bullish stance on the counter.
Coincidentally, 200 DEMA, which comes around Rs 9,850, has been successfully tested (refer to the chart). On the indicator front, daily stochastics has shown a bull divergence (refer to the chart). Thus, one can buy in the zone of Rs 9,900–10,200 with an upside target of Rs 11,000 and stop-loss orders would be placed on a daily closing basis around Rs 9,650.
Expert: Omkar Patil, technical & derivatives analyst - institutional equity at Ashika Group
Tata Power: Buy | LTP: Rs 390 | Stop-Loss: Rs 370 | Target: Rs 435 | Return: 11 percent
The stock is presently trading at an all-time high, reflecting its strong momentum. The consistent up move from the lower levels of Rs 230 has found support on each dip at the 12-day EMA. Additionally, the MACD (moving average convergence divergence) on the daily timeframe has shown a positive crossover above the zero line, indicating the likelihood of the prices continuing to trend higher.
Going ahead, we expect the prices to move higher till Rs 435 where the stop-loss on the downside must be kept at Rs 370 on closing basis.
Bank of Baroda: Buy | LTP: Rs Rs 247.6 | Stop-Loss: Rs 235 | Target: Rs 275 | Return: 11 percent
The stock is in a robust uptrend, marked by higher highs and higher lows. The recent up move is accompanied by a surge in volumes, indicating a strong buildup in the trend.
Additionally, the MACD on the daily timeframe has shown a positive crossover, confirming the presence of positive momentum in the stock.
Going ahead, we expect the prices to move higher till Rs 275 where the stop-loss on the downside must be kept at Rs 235 on closing basis.
National Aluminium Company: Buy | LTP: Rs 149 | Stop-Loss: Rs 144 | Target: Rs 165 | Return: 11 percent
The stock has recently surpassed its multi-year high around Rs 142, the highest since April 2008. The stock has broken out of the consolidation zone range of 122-140, indicating the continuation of the prior uptrend. The recent rise in volumes also reflects the enthusiasm in the trend.
Going ahead, we expect the prices to move higher till Rs 165 where the stop-loss on the downside must be kept at Rs 144 on closing basis.
Expert: Ruchit Jain, lead research at 5paisa.com
Colgate Palmolive: Buy | LTP: Rs 2,569 | Stop-Loss: Rs 2,480 | Target: Rs 2,730 | Return: 6 percent
The stock has seen an uptrend in last few months and has shown an outperformance to other stocks from the FMCG sector. In last few weeks, the stock consolidated in a range which just seemed to be a time-wise correction within an uptrend.
The prices have now given breakout from this consolidation and the RSI (relative strength index) oscillator too has given a positive crossover which indicates a resumption of the uptrend.
Traders can look to buy the stock around current market price of Rs 2,570 for potential target of Rs 2,730. The stop-loss on long positions should be placed below Rs 2,480.
Dr Reddy's Laboratories: Buy | LTP: Rs 6,121 | Stop-Loss: Rs 5,920 | Target: Rs 6,470 | Return: 6 percent
The stock gave a breakout from its previous swing high resistance post the announcement of its quarterly results. The volumes on breakout were high which indicates a fresh buying interest in the stock and the RSI readings too are hinting at positive momentum.
We advise traders to look for buying opportunities in the stock around current market price of Rs 6,120 and add on any dips towards the breakout zone of Rs 6,000. The potential targets for the stock are seen around Rs 6,320 and Rs 6,470 while stop-loss on long positions should be placed below Rs 5,920.
HCL Technologies: Buy | LTP: Rs 1,576 | Stop-Loss: Rs 1,500 | Target: Rs 1,720 | Return: 9 percent
The stock has been forming a ‘higher top higher bottom’ structure since last few months and is thus in an uptrend. The 20 DEMA has been acting as a support on declines and it has formed a ‘Bullish Flag’ pattern on the daily charts.
The price volumes structure is also bullish as the price up moves have been supported by good volumes, but the corrections have not seen any high volume sell-off.
Hence, we advise short term traders to buy the stock in the range of Rs 1,580-1,570 for potential targets of Rs 1,660 and Rs 1,720. The stop-loss on long positions should be placed below Rs 1,500.
Expert: Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas
Grasim Industries: Buy | LTP: Rs 2,175 | Stop-Loss: Rs 2,050 | Target: Rs 2,300-2,411 | Return: 11 percent
Grasim was consolidating in a range and in process has retraced 38.2 percent of the rise from Rs 1,820 – Rs 2,166. In terms of price pattern it has formed and broken out a Bullish Flag pattern on the upside indicating resumption of the next leg of upmove.
Daily momentum indicator has completed its pullback to the equilibrium line and triggered a positive crossover which indicates start of a new cycle.
Prices are trading along the expanding upper Bollinger band indicating that the positive momentum is likely to continue. On the upside, the move can extend towards Rs 2,300 and above that it can extend towards Rs 2,411. Structure becomes weak below Rs 2,050.
PFC: Buy | LTP: Rs 443 | Stop-Loss: Rs 410 | Target: Rs 479-495 | Return: 12 percent
Power Finance Corporation (PFC) has been in a medium term uptrend. In the last two months, the stock has undergone a time wise correction where it has been trading within the broad range of Rs 380 – 430. The range has been broken out on the upside and suggests that the stock has resumed its next leg of upmove.
Daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicator suggest that the stock has resumed its upmove after a two months consolidation.
Targets on the upside are placed at Rs 479 which is the weekly upper Bollinger band and Rs 495 which is the range breakout target. The structure becomes weak below Rs 410.
SBI: Buy | LTP: Rs 641 | Stop-Loss: Rs 616 | Target: Rs 670-700 | Return: 9 percent
State Bank of India (SBI) underwent correction and retraced 50 percent of the rise it witnessed from Rs 555 to Rs 660. The correction halted around the 20-week moving average (Rs 602) and witnessed buying interest from the crucial support zone.
The daily momentum indicator provided a positive crossover from below the equilibrium line which is a buy signal. On the price front the stock has broken out of a falling channel indicating resumption a fresh leg of upmove.
We expect the stock to rise towards the recent swing high of Rs 670 and extend towards the psychological level of Rs 700 from short term perspective. Structure shall become weak below Rs 616.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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