After the knee-jerk reaction on Lok Sabha 2024 election results day, the market has witnessed one of the steepest rallies in the last 3-4 weeks across sectors. Most sectors have either extended their rally or begun a fresh uptrend in recent weeks. All eyes are now on the Union Budget, scheduled to be announced on July 23.
"One theme that has emerged from the long consolidation period is the agri theme," says trader Praveen Kumar. He believes companies are poised to benefit from government reforms in agriculture, including those in agrochemicals, fertilisers, sugar, rice, and edible oils.
"It is prudent to consider companies in these segments as many stocks are emerging from long consolidations ranging from 3 to 6 years. A few stocks showing promising chart patterns include Coromandel International, Chambal Fertilisers, Bayer Crop in agrochemicals, and Triveni Engg in sugar sector," said Praveen Kumar.
Praveen Kumar's top picks from the segment:
Chart of Coromandel International shows support in Rs 1400-1500 band.
The chart of Bayer Crop has support area between 6000 and 6200.
The chart of Chambal Fertilisers has a support area between 470 and 500.
Kumar believes that this theme this could be one of the promising themes to watch for the medium term, given multiple tailwinds.
"With the current government being a coalition and more than 60% of our population residing in rural areas with high dependency on agriculture, it is crucial for the government to maintain their support ahead of upcoming state elections. This suggests that further reforms are likely in agriculture-focused areas, " said Kumar.
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