BackBuy or sell on Budget 2024 day: Osho Krishan recommends these two stocks to buy today
Buy or sell stocks: Osho Krishan has recommended two stocks to buy today - Computer Age Management Services and Ingersoll-Rand (India).
PremiumStock Market News: Ahead of the US Federal Reserve meeting outcome and the announcement of the Interim Budget 2024, domestic benchmark equity indices, the Nifty 50 and the Sensex, recorded substantial gains on Wednesday.
Amidst the pre-budget euphoria, the Nifty 50 came back into action and bulls cheered again. After a robust Q3, Dr Reddys Lab (+4.57%) and Sun Pharma (+3.34%) rose, and the Nifty Pharma Index (+2.51%) jumped. All sectoral indexes finished the day in the green because of short covering and bargain hunting, said analyst.
The S&P BSE Sensex rose 0.86% or 612.21 points to end at 71,752.11, while the Nifty 50 closed 0.95% or 203.60 points higher to end at 21,725.70.
The PSU Bank index increased by 2.28% while State Bank of India gained 2.36%. Bank of Baroda and Punjab National Bank too zoomed 5% higher each.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
Ahead of the Lok Sabha elections, Finance Minister Nirmala Sitharaman will present the Interim Budget 2024–2025 today. Experts in the market anticipate that the government will continue to prioritise capital spending and fiscal consolidation in order to sustain the growth momentum, but they do not anticipate any significant announcements in the interim budget.
"A positive build-up was reflected in Indian markets prior to the interim budget, although expectations are low, the market anticipates a lower fiscal deficit supported by buoyant tax revenues. The overall trend in the market is akin to a seesaw, and the buy-on-dips strategy is effective as of now. The pharma sector stood out with a positive earnings outlook. Global market cues are mixed ahead of the FOMC meeting, and US 10-year yields were marginally down. An immediate rate cut seems improbable, but indications about the future trajectory could ease volatility," said Vinod Nair, Head of Research, Geojit Financial Services.
Nifty 50 Outlook
For six consecutive days, Nifty 50 displayed a pattern of alternating between up and down days, reflecting market uncertainty. It is apparent that the market is awaiting a catalyst for directional trade, with budget days traditionally serving as such triggers. The upcoming session is deemed crucial, as it will likely determine the market's near-term direction, said Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One.
Analysing the chart reveals a trading range between 21,850 on the higher side and 21,400 on the lower side, with 21,200 serving as a key support. Both levels have been staunchly defended, but there is a likelihood that one zone may be breached, leading to a trending move in early February, explained Krishan.
Given the interim nature of the budget, the Finance Minister's announcements will be closely watched. Historically, interim budgets tend not to include major reforms. However, positive announcements could propel the index beyond 21850, aiming for all-time high levels around 22,100. Conversely, a break below 21,400 and 21,200 may trigger a substantial sell-off. Expect heightened volatility on budget day, and traders are advised to exercise caution, avoiding undue risks and waiting for the market to stabilise before making aggressive moves, according to Osho.
"A notable aspect of the day was the active participation of the broader market, particularly in small-cap counters, which experienced remarkable movements. On budget day, individual themes may exhibit strong performance, capitalising on potential announcements. Traders are encouraged to focus on such themes to identify outperforming opportunities in the upcoming session," advised Krishan.
Stock Recommendations For Today by Osho Krishan
Computer Age Management Services Ltd (CAMS)
According to Osho, CAMS has seen a strong resurgence from its short-term exponential moving average (50 DEMA) on the daily time frame and surpassed its previous swing high with ease. The recent price movement has been backed by robust volumes, adding to the bullish quotient. Simultaneously, the counter is on the verge of a crucial breakout and looks poised to propel in a northward direction. On the technical front, most of the indicators are in line with the ongoing momentum, supporting the bullish view.
"Hence, we recommend to BUY CAMS around ₹2,870-2,850, keeping a stop loss of ₹2,732 for a positional target of ₹3,070–3,100," said Krishan.
Ingersoll-Rand (India)
Osho believes that Ingersoll-Rand (India) has been in a stellar bull run, hovering at new highs. The stock recently gained traction to claim a lifetime high. The technical structure, with its ‘Cup and Handle’ formation, construes a positive development, and it looks poised to continue its upward rally into uncharted territory in the near future. The technical parameters complement the up move very well, showcasing inherent strength in the counter.
"Hence, we recommend to BUY Ingersoll-Rand around ₹3,250–3,230, keeping a stop loss of ₹3,090 for a positional target of ₹3,500–3,530," said Osho.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!
