Top Stocks To Buy After Budget 2024: Day Trading Picks By Sumeet Bagadia

After heavy selling in the first half, Nifty recovered well to finish at 24,479, down 30 points, in the second half. Tuesday saw Bank Nifty end at 51,778, down 502 points, after failing to hold above 52,500 levels and continuing to decline. In the second half, it made a modest recovery. After plunging 17.43% intraday to close at 12.75, the India VIX stipulated bulls comfort amid the Budget 2024-25 presentation. It was a mixed bag in terms of sectoral performance, with buying observed in the FMCG, Pharma, and Consumer Durable industries.

Market Outlook Today

Rajesh Bhosale, Equity Technical Analyst, Angel One said, "On the key Budget day, the Benchmark Index began on a positive note. However, as the day progressed, prices traded cautiously within a range, influenced by the Budget announcement. In the second half, volatility spiked, causing prices to drop sharply below 24100. Despite this, prices quickly rebounded, reclaiming lost ground and ending just below 24500 with a marginal loss of 0.14%. It was an intriguing trading session. Key events like the Budget often set the tone for future trends, but today, the closing did not show significant changes. The impact of such events can sometimes be seen in the following sessions, making the next few days crucial."

"Observing the daily chart, the market shows a defined range. The upper end, marked by a bearish engulfing pattern formed on Friday at 24850, serves as a key resistance, followed by the psychological level of 25000. On the downside, the panic low around the 20EMA at 24100 - 24000 acts as a strong support zone. In our previous outlook, we highlighted the fresh sell signal by the RSI Smoothened in the overbought zone, which remains a key observation for our firm cautious stance. However, recent observations indicate that the bulls are very resilient and hard to give up. We expect the Index to hover within the 24000 - 25000 range and anticipate trending moves after some consolidation. In this scenario, it is advisable to consider entering long positions near the lower end of the range and booking profits at the mentioned resistance levels," he further added.

Stocks To Buy Today

Choice Broking's executive director Sumeet Bagadia recommended buying two stocks on Wednesday, July 24, following the government's substantial efforts on Tuesday to achieve its ambition of a "Viksit Bharat" in this Union Budget 2024.

Escorts Kubota

Buy ESCORTS in Cash @ 4120.85, stop-loss @ 3950, target @ 4450

ESCORTS presents a compelling opportunity for a buy position in the cash market at its current price of 4120.85. The stock has recently broken above a significant falling trend line observed on the daily chart, signalling a potential reversal in trend. This breakout is accompanied by strong trading volumes, underscoring the strength of the bullish momentum.

Furthermore, the Relative Strength Index (RSI) has exhibited a bullish divergence and is currently at 55.32, showing a positive crossover, indicating a potential continuation of the uptrend. Additionally, ESCORTS has bounced back from its medium-term (50-day) EMA and is trading above its short-term (20-day) EMA, reinforcing the bullish outlook.
In conclusion, based on the breakout from the falling trend line, strong trading volumes, bullish divergence on the RSI, and supportive moving average indicators, the recommendation is to buy ESCORTS at the current price of 4120.85 in the cash market. A stop-loss (SL) is advisable at 3950, with a target (TGT) set at 4450, reflecting a favourable risk-reward ratio.

Sun Pharmaceutical Industries

Buy SUNPHARMA in Cash @ 1601.6, stop-loss @ 1548, target @ 1710

SUNPHARMA appears to be a promising buy opportunity at its current price of 1601.6 in the cash market. The stock has demonstrated a clear uptrend characterized by higher highs and higher lows on the daily chart. Recently, it has broken out of a consolidation phase, supported by decent trading volumes, indicating renewed bullish momentum.
Key technical indicators further validate this bullish sentiment.

The Relative Strength Index (RSI) is currently at 64.42, signalling a positive crossover and suggesting strength in the on-going uptrend. Moreover, SUNPHARMA is trading above its key moving averages - the 20-day, 50-day, and 200-day exponential moving averages (EMA). This alignment confirms the stock's strong upward momentum across different timeframes.

In conclusion, considering the bullish chart patterns, supportive trading volumes, and favourable positioning above key EMAs, the recommendation is to buy SUNPHARMA at the current level of 1601.6 in the cash market. A stop-loss (SL) is advised at 1548, and a target (TGT) is set at 1710, reflecting a favourable risk-reward ratio based on the technical analysis provided.

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.