Equity markets have been on a roll post the re-election of Narendra Modi-led National Democratic Alliance (NDA) to power in the national elections in June 2024. The Sensex and Nifty have scaled record high levels, and are up around 15 per cent from the panic low hit on June 04, 2024.
One of key factors driving the market rally has been expectations of reforms continuity by the government and strong economic growth.
Experts believe that the government will stick to its stance on fiscal consolidation, and continue to push for reforms in the upcoming Union Budget 2024 on July 23.
Brokerage firm Anand Rathi in its pre-Budget expectation note, said the focus will be on boosting growth and on stability through continuing emphasis on infra and consumption-inducing measures. They broadly expect the Budget to be positive for the equity market.
Against this backdrop, here are 11 stocks across sectors that are likely to be in focus in the run-up to the Budget and also post the Union Budget basis on the likely measures to be proposed for the relevant sectors.
Technical outlook on 11 stocks for Budget 2024:
RVNL
RVNL stock has surged 223 per cent so far in 2024; at present levels RVNL is seen trading in an overbought zone on multiple time-frames. As per the weekly chart, the bias at the counter is likely to remain positive as long as the stock holds above Rs 580 levels. Key support on the longer-term chart is seen at Rs 490.
Angel One
After a massive rally in 2023, shares of broking firms have been underperforming in the calendar year 2024 so far. The stock has shed almost 36 per cent so far this year.
On the monthly scale, the stock is seen testing support around its 20-MMA (Monthly Moving Average), which stands at Rs 2,125 in the last two months; whereas, the weekly chart shows presence of key support in the form of 100-WMA (Weekly Moving Average) at Rs 2,017.
SBI
Share price of this banking giant has rallied nearly 38 per cent so far this year. Key momentum oscillators seem to be favourably placed on the daily and weekly charts for SBI; hence, the stock may see further upside in the near-term.
ITC
Larsen & Toubro (L&T)
Larsen & Toubro stock is seen consolidating in the broad range of Rs 3,250 – Rs 3,900 since the last 7 months. Having said that, the overall bias for the stock is likely to remain positive as long as it trades above its 200-DMA, which stands at Rs 3,418.
On the other hand, the daily chart indicates near resistance for L&T at Rs 3,705, above which the stock may ride back towards the higher-end of the existing trading. Breakout from the range can potentially trigger a rally towards Rs 4,450; with interim resistance seen around Rs 4,100 and Rs 4,280 levels. CLICK HERE FOR THE CHART
Dixon Technologies
Dixon Technologies has surged over 91 per cent so far in 2024. The overall bias at the counter is expected to remain bullish as long as the stock holds above Rs 11,470 levels on a monthly closing basis. Near term support for the stock is seen at Rs 12,160 and Rs 11,750 levels.
Mahindra & Mahindra (M&M)
Mahindra & Mahindra has rallied over 61 per cent thus far this year. The price-to-moving averages action remains favourable on the daily scale, despite the recent dip. M&M will need to cross and sustain consistently above Rs 2,920 levels in order to resume its upward trend. The long-term bias for the stock is likely to remain bullish as long as the stock holds Rs 2,685 on a monthly closing basis. CLICK HERE FOR THE CHART
GMR Airports
GMR Airports Infrastructure has gained close to 21 per cent in this calendar year so far. Despite the positive bias at the counter, the stock has been unable to run-away as it faces resistance around the higher-end of the Bollinger Bands on the monthly scale. The stock needs to break and trade consistently above Rs 105 levels, for a bullish run to emerge.
UltraTech Cement
UltraTech Cement stock is seen making higher-highs and higher lows on the daily scale for the last two months. The stock at present is seen testing support around its 20-DMA, which stands at Rs 11,470. Below, which the next significant support stands at Rs 11,269.
Power Grid Corporation
Power Grid has rallied over 47 per cent so far this year. The stock is seen trading alongside the higher-end of the Bollinger Bands on the monthly scale. The stock needs to cross and sustain above Rs 348 – Rs 354 resistance zone for a fresh bullish breakout. Following which, the stock can potentially rally to Rs 374 levels.
Finolex Cables
First Published: Jul 18 2024 | 9:31 AM IST
