Trading Recommendations for Union Budget 2024 Announcement

Heightened volatility is likely in the stock market as traders eye Union Budget 2024 announcements later today. Technical analysts believe the NSE barometer Nifty 50 has a strong support at 24,500, which, if breached, could lead to profit booking, confirming the breakdown of the upward-sloping channel. The level of 24,620 is seen acting as crucial resistance, analysts said.

Rupak De, Senior Technical Analyst at LKP Securities, has provided five trading ideas that he believes can deliver healthy gains despite the market volatility today:

  1. Texmaco Rail & Engineering Ltd
    • Recommendation: Buy
    • Target: Rs 296
    • Stop loss: Rs 269
    • Analysis: The Texmaco Rail stock formed a higher top-higher bottom formation on the daily timeframe and the price moved up after finding support above the 21-day exponential moving average. The RSI on the hourly time frame is in a bullish crossover, suggesting a possible shift in price momentum for the short term. In the short term, the stock might move towards Rs 296, with support placed at Rs 269.
  2. Dr Lal PathLabs Ltd
    • Recommendation: Buy
    • Target: Rs 3,300
    • Stop loss: Rs 2,938
    • Analysis: De said the Dr Lal PathLabs stock has given a consolidation breakout on the daily chart and has closed with a bullish candlestick over its previous high. It is also sustaining above its 21-day and 14-day EMAs. The RSI shows a bullish crossover on multi-time frame charts, indicating potential upside movement. Although the stock is slightly overbought, it can be bought on a pullback to Rs 3,068, with a stop-loss at Rs 2,938 and a target of Rs 3,300.
  3. ITC
    • Recommendation: Sell
    • Target: Rs 440
    • Stop loss: Rs 480
    • Analysis: On the daily chart, the ITC stock has formed a Tweezer Top pattern, suggesting a possible bearish reversal in the price. The RSI has entered a bearish crossover and is moving out of the overbought zone. De predicts that the stock might move down towards Rs 440, with resistance placed at Rs 480.
  4. Great Eastern Shipping
    • Recommendation: Buy
    • Target: Rs 1,700
    • Stop loss: Rs 1,300
    • Analysis: The stock has formed a Bullish Engulfing pattern on the daily timeframe, following a correction. Additionally, the price moved up after finding support at the 21-day exponential moving average. The RSI on the hourly time frame is in a bullish crossover, suggesting a possible shift in price momentum for the short term. In the short term, the stock might move towards Rs 1,700, with support placed at 1,300.
  5. Chambal Fertilisers and Chemicals Ltd
    • Recommendation: Buy
    • Target: Rs 550
    • Stop loss: Rs 494
    • Analysis: The Chambal Fertilisers stock formed a Piercing Line pattern following a sideways corrective phase on the daily timeframe. Additionally, the script reclaimed the 21-day exponential moving average. The RSI has entered a bullish crossover, suggesting a possible shift in price momentum for the short term. In the short term, the stock might move towards Rs 550, with support placed at Rs 494.

These trading ideas provide a snapshot of potential opportunities in the current market scenario, offering traders valuable insights to consider amidst the volatility surrounding the Union Budget 2024 announcement.

Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked...