On Budget Day, there was a lack of enthusiasm for the Indian benchmark indices, the Sensex and Nifty 50, as they closed the day with minimal changes. The Nifty was down slightly by 0.11 percent, while the Sensex remained flat with a 0.01 percent increase. The Nifty Bank index also saw a decrease of 0.16 percent. In contrast, the small and midcap indices showed more activity, with the BSE Midcap index down 0.49 percent and the BSE Smallcap index up 0.28 percent.
Among the sectors on the BSE, the Realty index saw the highest surge, gaining 3.69 percent. The Fast-Moving Consumer Goods (FMCG) sector also experienced a boost due to major tax relief for the middle class, with the BSE FMCG index rising 2.91 percent. On the other hand, the BSE Capital Goods index was the biggest loser, down 3 percent.
Here are four stocks that appear to be attractive based on the charts following the Budget announcement. These stocks have been selected from the top performing sectors of the day, and the analysis and forecast are purely based on technical analysis. Investors are advised to conduct thorough due diligence and implement appropriate risk management strategies, such as setting stop-loss levels, before making any investment decisions.
1. Tata Consumer Products (₹1,069.50)
The stock has shown a 17 percent surge since the beginning of the year, rallying from a key trend support level of ₹940. This marks the end of a downtrend that had been in place since September last year. Tata Consumer Products shares have the potential to target ₹1,400-1,450 over the next three to four quarters, with intermediate resistance levels at ₹1,100-1,200. Immediate support is at ₹1,000, followed by stronger support at ₹980-960. The bullish view is likely to hold as long as the share price remains above ₹1,000, but a decline below ₹900 could lead to a fall towards ₹800 or lower.
2. Eicher Motors (₹5,388)
Having started the year positively with a bullish breakout in early January, the Eicher Motors stock had been in a prolonged consolidation phase since May last year. Support is now at ₹5,200, with lower support at ₹4,950. Immediate resistance is at ₹5,450, and a successful break above this level could take the stock towards ₹6,100 over the next two to three quarters. A drop below ₹4,950 could negate the bullish view, potentially leading to a fall to ₹4,650 or ₹4,500, although such a scenario seems unlikely with the stock expected to stay above ₹5,200.
3. Macrotech Developers (₹1,265)
After a three-week decline, the stock rebounded last week from support at ₹1,060, ending a downtrend. The price range of ₹1,000-1,060 is a significant support level for Macrotech Developers (Lodha). The stock is expected to rise over the medium term, possibly reaching ₹1,800 by the end of the year. A supply zone between ₹1,400 and ₹1,500 may cause a temporary pullback to ₹1,300, before a potential breakout towards ₹1,800. However, a drop below ₹1,000 could turn the outlook bearish, leading to further declines.
4. Havells India (₹1,656.50)
Havells India has been on a downtrend since September last year, but recently found support at ₹1,500, triggering a rebound. The stock also formed a higher low on the daily chart, indicating bullishness. Within a year, the stock could surpass resistance at ₹2,050 and reach ₹2,200, with a minor correction likely at ₹1,775 before the upward move continues. A breach of ₹1,500 could result in a fall to ₹1,375.
