On Budget Day, the Indian benchmark indices, the Sensex and Nifty 50, ended the day on a flat note, with Nifty down marginally by 0.11 per cent and Sensex up by 0.01 per cent. The Nifty Bank index also saw a decline of 0.16 per cent. In contrast, the small and midcap indices showed higher activity, with the BSE Midcap index down 0.49 per cent and the BSE Smallcap index up 0.28 per cent.
Among the sectors in the BSE, the Realty index saw the highest surge of 3.69 per cent, followed by the Fast-Moving Consumer Goods (FMCG) sector which rose by 2.91 per cent after receiving major tax relief for the middle class. On the other hand, the BSE Capital Goods index was the biggest loser, down by 3 per cent.
Here are four stocks that look attractive based on technical analysis following the Budget announcement. These stocks are selected from the top-performing sectors of the day:
1. Tata Consumer Products (₹1,069.50):
Tata Consumer Products has seen a 17 per cent surge since the beginning of the year, rallying from a key trend support level of ₹940 and signaling the end of a downtrend since September last year. The stock has the potential to reach ₹1,400-1,450 in the next three-four quarters, with immediate support at ₹1,000 and strong support at ₹980-960. The bullish view on the stock will be invalidated if it falls below ₹900.
2. Eicher Motors (₹5,388):
Eicher Motors started the year positively with a breakout from a sideways range in January, after a prolonged consolidation phase since May last year. The stock has support at ₹5,200 and a lower support at ₹4,950, with an immediate resistance at ₹5,450. A breakout above this level could take the stock to ₹6,100 in the next two-three quarters. A drop below ₹4,950 could signal a fall to ₹4,650 or ₹4,500.
3. Macrotech Developers (₹1,265):
Macrotech Developers rebounded last week after finding support at ₹1,060, indicating a potential rise towards ₹1,800 by the end of the year. The stock may face a supply zone between ₹1,400 and ₹1,500 before potentially moderating to ₹1,300 and then resuming the uptrend towards ₹1,800. A breach of support at ₹1,000 could lead to a bearish scenario with a possible decline to ₹800.
4. Havells India (₹1,656.50):
Havells India has been on a downtrend since September last year, finding support at ₹1,500 and rebounding from that level recently. The stock has also formed a high on the daily chart, adding to the bullish sentiment. The stock could surpass resistance at ₹2,050 and reach ₹2,200 within a year, with a minor correction expected at ₹1,775. A breach of support at ₹1,500 could trigger a fall to ₹1,375.
Investors should conduct proper due diligence and implement risk management strategies before investing in these stocks.
