1 Defence, 1 Auto, 1 Power Stock Are Top Picks Of Prabhudas Lilladher To Buy On Interim Budget Day, Feb 1

The interim budget which will be presented by Finance Minister Nirmala Sitharaman on February 1, 2024, will dictate the trends in the Indian stock market. The budget announcement will begin at 11:00 am. This budget will be interim ahead of the Lok Sabha Elections, and the main budget will be announced by the winning party in the elections. On this big day, there are three stocks recommended to buy from Prabhudas Lilladher. They belong to diverse segments such as defence, auto, and power.

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher expects Nifty 50 to find support and resistance at 21,600 and 21,900 respectively on Budget day. Bank Nifty is seen to have support and resistance of 45,600 and 46,600 respectively.

Prabhudas Lilladher has recommended buying the following stocks on February 1, 2024:

- BUY PARAS DEFENCE cmp 810.55 Stop Loss 796 Target 855

- BUY SONACOMS cmp 618.20 Stop Loss 609 Target 647

- BUY KALPATARU POWER cmp 795.30 Stop Loss 784 Target 832

Also, Siddhartha Khemka, Head - of Retail Research, at Motilal Oswal Financial Services said, that on the domestic front, investor's focus will be on the Budget. While the Interim Budget is non-event, the general expectations are minimal in terms of major proposals. Given that India's economic growth has been strong in the last 2 years, the government could focus on fiscal consolidation and could set a fiscal deficit target of around 5.2%-5.4% of GDP. Since it is colliding with the US Fed outcome we expect the market to see some volatility. However, the overall trend continues to remain positive.

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, the recent move in the index is not giving any clear signal over the next directional move and we need a decisive close above 21,850 in Nifty to inch towards the 22,000 zone else profit taking would resume. Amid all this, we reiterate our view to focus on stock selection and trade management citing the upcoming events and prevailing earnings season.

Moreover, Prashanth Tapse, Senior VP (Research), Mehta Equities said, that at a time when valuations are looking stretched and global macro concerns such as slowdown in China and geo-political tensions remain high, investors would resort to profit-taking at regular intervals and also bet on select stocks going ahead.

Further, Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services said, "It's been an eventful and earnings-heavy week in Indian equities. Large-cap earnings have been underwhelming so far. Zee/Sony legal dispute commences today at SIAC. Reliance's market cap crossed Rs19tn on Monday on post facto reports indicating Russian Oil being largely unaffected by the Red Sea disruption. Indian Interim budget will be presented Today. We don't expect any big bang announcements, but is likely to be watched for clues on fiscal consolidation and policy priorities ahead."

Gandhi added, on the international front, the IMF raised the global growth forecast to 3.1% for this year. Fed is expected to hold interest rates - but all eyes will be on guidance (to be released late today). US tech earnings kicked off with encouraging signs - Microsoft posted solid numbers as Azure cloud growth beats estimates. Apple is to report on Thursday afternoon.

Further, Gandhi said, that FII flows were broadly negative following last week's trail. The market should continue to be range-bound on lacklustre earnings results. On technicals, 21500 to act as interim support levels. Any fall further should see support at 21200-21250 levels next. On the upside, 21800 would be the first resistance level."

In the previous session, the Nifty 50 and Sensex closed in the green ahead of the much-anticipated Interim Budget. Frontline indices recorded gains ranging from 1-2%, with the Midcap Index reaching a record high. Closing on a positive note, 45 out of the 50 Nifty stocks ended the day on a higher note. Leading the pack were heavyweight stocks HDFC Bank and Reliance Industries (RIL), contributing significantly to Nifty's upward trajectory.

On yesterday's session, Vinod Nair, Head of Research, at Geojit Financial Services said, "A positive build-up was reflected in Indian markets before 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."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or 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.