Feedback
Angel One in its latest technical report on interim Budget 2024 said the prevailing undertone favours the bulls and that any dip is likely to augur well for them. The domestic brokerage said a conservative approach is advisable for Nifty traders after the recent rally, saying they should remain selective in their approach, emphasising more on the themes poised for outperformance. For Nifty Bank, the brokerage said one should avoid getting carried away by in-between rallies and that the immediate future looks a bit challenging for the index.
Nifty outlook
In its Nifty Budget strategy note, Angel One said cycle of higher highs–higher lows is certainly visible on the daily time frame with in-between time-wise correction phases, construing positive development for a bullish market. “As far as levels are concerned, 21,200-21,000 zone is to be treated as immediate support and a slide below could disrupt the ongoing move for another 500-600 odd points of correction,” it said.
If that happens, Angel One advised traders to start nibbling into quality propositions. “On the flip side, the 22000 mark is likely to be seen as an intermediate hurdle before the Nifty index reclaims its high of 22,125 and continues its northward journey into uncharted territory in the near future,” it said,
Nifty Bank outlook
In its Nifty Bank Budget strategy, Angel One said the index is positioned at an attractive zone very close to its 200-DEMA and any positive development for the sector in the Budget could provide impetus for further impulsive move higher in the index. That said, one should avoid getting carried away by in-between rallies, as the immediate future for this important space looks a bit challenging, Angel One said.
Also read: L&T, SRF, Astral, Zodiac Energy: Stocks to keep an eye out for
“From a technical standpoint, the recent onslaught got arrested around the key support zone of 200-SMA on the daily time frame chart. Although, with a broader view this correction provides excellent opportunities, it would be too early to consider this as a short term bottom for the index. It’s better to wait for further developments and should reassess the situation at regular intervals. At present, 44,800 is to be seen as a make or break level. Any further disappointment in this space, would challenge this support to test the crucial support zone of 43500 – 42000. On the flipside, 46,500-47,500 are to be treated as near term hurdles,” it said.
Whenever the uncertainty or short term pain subsides, one can expect Nifty Bank retesting recent highs of 48,600 first and then the magical figure of 50,000 in months to come, the brokearge said.
4 stocks to consider
MTNL
Angel One said the PSU stock has jumped more than 30 per cent this month and looks appealing on the higher degree charts as well. The counter has surpassed the strong resistance zone around the 40-41 odd zone and looks poised for a rally beyond the 50-mark in the near term.
Recently, this counter has been taking support around the 20 EMA on the weekly chart, which is now placed around the Rs 32-33 odd zone.
“We anticipate that this outperformance will persist, and hence, we recommend buying this counter on dips towards Rs.41-38 for a near-term target of Rs 52, with a stop loss at Rs 32,” it said.
Petronet LNG Ltd
After a long consolidation phase, Petronet LNG has finally shown a strong volume-based buying in the last two months, Angel One said. The counter, it said, has precisely rebounded from the multi-year support zone around 190 odd levels which also coincides with the 89 EMA on the monthly chart.
“On the higher side, the stock has managed to surpass the hurdle of 250-255 and has formed a higher-top higher[1]bottom structure. Considering the above development, we expect a continuation of the ongoing rally. Hence, we would recommend a buy on Petronet between the range of Rs 255-245, with a stop loss of Rs 224 and a target of Rs 295,” it said.
Shree Digvijay Cement Ltd
The entire cement space is on a roll since few months, with larger names like ACC and Ambuja Cements getting out of their slumber phase. Angel One expects the up move in the cement to continue. Shree Digvijay Cement has been performing consistently since March 2023 low and despite giving two-fold returns in such a short span, there is no sign of fatigue yet, Angel One said.
“Monthly chart depicts a breakout from bullish ‘Cup and Handle’ pattern with sizeable volumes. Traders are advised to buy around Rs 110-105 for a target of Rs 136. The stop loss to places at Rs 92,” it said.
Shriram Finance Ltd
Shriram Finance has been one of the stable performers within the NBFC space. The stock movement has not been showing any flamboyance but if one takes a glance at the daily and weekly time frame charts, one can clearly see a steady move in the form of ‘higher highs-lows’ in the last few months.
“We expect continuation of this outperformance; however prices have recently moved rapidly and hence, one should wait for a small decline to get into this counter. Traders are advised to buy around Rs 2,350-2,250 for a target of Rs 2,880. The stop loss needs to be placed at Rs 2,000,” Angel One said.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Amber Enterprises, Dixon Tech shares rise up to 3% as govt cuts import duty on mobile phones spare parts
Copyright©2024 Living Media India Limited. For reprint rights: Syndications Today
Add Business Today to Home Screen
Home
Market
BT TV
Reels
Menu
Menu