Budget Picks: Top 4 stocks to buy ahead of Interim Budget 2024 that could give 10-20% return

The Budget Day always holds its relevance in forecasting the economic outlook of the Nation, which is simultaneously being reflected through the equity markets.

A highly anticipated Day with future projections and a roadmap for the nation is in the purview.

From the data point of view, the Indian equity markets have seen a whopping gain of over 20 percent since last year’s Budget, with many triumphs attained.

The sound domestic developments and favorable global scenarios kept the primary trend going, and the indices secured new highs, uplifting the market sentiments.

Now, as the interim Budget is just around the corner, which is also a special one, ‘Vote on Account’, ahead of the General elections, many eyes would be on it.Also, it would be interesting to see if the Finance Minister makes any major announcements or not because, historically speaking, such interim budget events do not include any notable reforms.From a technical standpoint, the benchmark index has witnessed a splendid move in the current financial year and the last quarter seems to remain inline with the ongoing trend.The 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, the 21200-21000 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. If this happens, then investors/traders are advised 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 22125 and continues its northward journey into uncharted territory in the near future.

The undertone favors the Bulls of D-Street, and dips are likely to augur well for them as well.

However, a conservative approach is advisable after recent accomplishments, and traders should remain selective in their approach, emphasizing more on the themes poised for outperformance.

Angel One Research team highlights 4 stocks that could give 10-20% return in the short to medium term:

MTNL: Buy| LTP Rs 43| Target Rs 52| Stop Loss Rs 32| Upside 20%

This month PSU stocks have given a spectacular run. The government-backed telecom stock MTNL has spiked more than 30% 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 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.

Petronet LNG: Buy| LTP Rs 267| Target Rs 295| Stop Loss Rs 224| Upside 10%

After a long consolidation phase, Petronet LNG has finally shown strong volume-based buying in the last two months.

The counter 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 bottom structure.

Considering the above development, we expect a continuation of the ongoing rally. Hence, we would recommend a buy on Petronet LNG between the range of 255-245, with a stop loss of 224 and a target of 295.

Shree Digvijay Cement Co: Buy| LTP Rs 115| Target Rs 136| Stop Loss Rs 92| Upside 18%

The entire cement space has been on a roll for a few months. With larger names like ACC and Ambuja out of their slumber phase, we expect an up move to continue in this space.

Digvijay Cement has been performing consistently since March 2023 lows. Despite giving two-fold returns in such a short span, there is no sign of fatigue yet.

The monthly chart depicts a breakout from bullish ‘Cup and Handle’ pattern with sizable volumes.

Traders are advised to buy around 110-105 for a target of 136. The stop loss to places at 92.

Shriram Finance: Buy| LTP Rs 2453| Target Rs 2880| Stop Loss Rs 2000| Upside 17%

This stock has been one of the stable performers within the NBFC space. Prices have not been showing any flamboyance; but if we take a glance at the daily and weekly time frame charts, we can clearly see a steady move in the form of ‘Higher Highs Higher Lows’ since 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 2350-2250 for a target of 2880. The stop loss needs to be placed at 2000.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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