New Year Stock Pick 2024: Trade Call By Sumeet Bagadia On 1st Jan, 2024

Indian benchmark indices ended the last trading session of 2023 lower amid mixed global cues. After losing five straight days of gains, domestic indices closed the year on a flat note on Friday, December 29. The NIFTY 50 completed the day at 21,731.40, down 0.22%, while the Sensex finished the day at 72,240.26, down 0.23%. Benchmark indices reached all-time highs in 2023, which made both the Indian and global equity markets fascinating. Border indices Nifty 50 and Sensex had year-to-date gains of up to 20% and 18.10%, respectively.

Market Outlook

Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS said, "2023 was an astounding year for Indian equities. The year started on a challenging note, but the situation eased with the year's passing as the challenges of further rate hikes reduced while corporate earnings remained resilient. The year saw risk-taking reap huge rewards, and PSUs registered another spectacular year. 2023 will end on a very strong note with solid market performance backed by consistent improvement in the profitability of Indian corporates. 2024 will be an interesting year as developed economies are likely to slow down, but challenges of rate hikes are unlikely.

The year could see the Federal Reserve cutting interest rates by mid-year, which will help the equity markets. However, elections in India and the US elections are likely to result in higher volatility, which means reduced market breadth and focus shifting to liquidity and quality management within the portfolio. Overall, it is a good time to take some profits in small caps and deploy in quality large caps and quality PSUs."

Stocks To Buy On Monday, 1st Jan 2024

Choice Broking's executive director, Sumeet Bagadia, is upbeat on Ashok Leyland and has selected the company as its new year pick for 2024, with a target price of Rs 191/201.

Ashok Leyland

Buy ASHOKLEY @ 175 & Upto 171 for the Target of 191/201

ASHOKLEY is exhibiting a robust technical setup on the weekly chart, characterized by a strong breakout of the cup and handle pattern above the crucial 168 levels. The stock, currently trading at 175, has successfully transcended the support zone within a pennant pattern, indicating a resumption of the upward trajectory. A significant aspect of the technical landscape is the stock's adherence to essential moving averages, emphasizing its positive momentum. The retest of breakout levels further reinforces the strength in the stock, providing a solid foundation for potential upside movement. The Relative Strength Index (RSI) at 54 indicates a favourable balance between buying and selling pressures. Investors can strategically approach the stock, considering buying opportunities on any retracement towards the 171 level. The technical configuration, marked by breakout patterns, moving averages, and RSI, suggests a promising outlook for Ashok Leyland Limited.

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.