Trade Call: From ZEEL To SUNTECK 4 Budget Day Stock Picks By VLA Ambala On 1st Feb, Thursday

The Nifty surged by 0.95% in Intraday trading on Wednesday, recovering nearly 70% of its losses from the previous day. This development is because buying was observed across all sectors, with Infrastructure, PSU, and pharmaceuticals leading the stock market.

Notably, two leading players in the Nifty index, namely - HDFC Bank and Reliance Industries, rose 1.26% and 1.35%, respectively, recovering from the previous day's slump to an extent. Interestingly, the rally for PSU banking was prompted by the Bank of Baroda, the State Bank of India, and the Punjab National Bank. We can accredit this positive sentiment to the Q3 earnings report, which surpassed expectations, boosting the traders' and investors' confidence in them.

Overview of the Stock Market

The Nifty reached 69 on the relative strength index (RSI) in the weekly timeframe and is around 55 in the daily timeframe, forming a 'Sandwich' candlestick chart pattern. Notably, such a candlestick chart pattern suggests a momentary halt in the prevailing trend, followed by a potential reversal in the opposite direction.

At present, the Nifty has a wide range of 400 points, and a breakout in either direction could prompt a 3-5% movement within the next 14-15 days. Since the budget announcement is already here, significant volatility is expected in the upcoming intraday trading session.

That is why I recommend considering the hedging trading strategy to spread out the risk intensity. Additionally, sectors that traders must focus on before and after the budget include - energy and infrastructure. As we have discussed previously these sectors have already seen substantial momentum in the last few days and are expected to witness more momentum in the hours leading to and following the budget announcements.

The Nifty has two major support ranges at the weekly timeframe - the first extends from 21130 to 21250 range, whereas the second is from 21470 to 21530 levels. In the recent trading session, the market observed it close above the 21700 level. However, for the Nifty to reach a fresh record high, it would still need to trade 2% higher than its last closing price. The Nifty has again found support in the 21530 range, which is a critical level for traders.

This is because any movement around this level will determine the potential market momentum and sentiments.
With the Union Budget and Lok Sabha Election approaching, the stock market closed with a sense of fear. For instance, the Market Mood Index pointed at 27.54, indicating an 'Extreme Fear Condition' in the air. Similarly, the India VIX closed the day at 16.05, signaling a prevailing sense of uncertainty in the stock market. This would be an ideal time to prepare for a fresh investment. However, I would advise traders to remain cautious when selecting sectors and stocks and track their market movement closely for the next few days.

Investors are already seeing the upcoming US Fed's meeting as a prelude to potential interest rate cut measures. They also expect the Feds to consider lowering the federal funds' target range in the month of March to prepare for a soft landing.

Key Levels to Watch Out For On 1st Feb 2024

The Nifty's support range is expected to be between 21650 and 21580. On the other hand, the major resistance point for the intraday is anticipated to be around 21920/22050/22130. As for the Bank Nifty, the intraday support levels are expected to be between 46050 and 45800, with the resistance between 46250 and 46700.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) recommends four stocks to buy on - February 1, 2024. According to her, ZEEL, ALKALI, SUNTECK, and ASIANPAINT, have ample room for growth.

ZEEL

BUY - Rs. 173, TARGET - Rs. 190/200/210/225/250/270/300, and STOP LOSS (SL) - Rs. 150

ALKALI

BUY - Rs. 147, TARGET - Rs. 155/160/165, and STOP LOSS (SL) - Rs. 129

SUNTECK

BUY - Rs. 460/470, TARGET - Rs. 500/570/600/630/650/700, and STOP LOSS (SL) - Rs. 430

ASIANPAINT

BUY - Rs. 2965, TARGET - Rs. 3010/3050/3080/3150/3200, and STOP LOSS (SL) - Rs. 2910

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.