Stock Market Dips After Budget: Top 5 Stocks to Buy or Sell on Wednesday – Cochin Shipyard, IPCA Laboratories And More

The Indian stock market saw a slight dip on Tuesday, July 23, with the Sensex and Nifty 50 indices dropping nearly 2%. This was a reaction to Finance Minister Nirmala Sitharaman’s budget announcement, which included increases in the Security Transactions Tax (STT), long-term capital gains tax (LTCG), and short-term capital gains tax (STCG).

Following these announcements, the Sensex dropped by 1,278 points, or 1.6%, reaching a low of 79,224.32 during the day. The Nifty 50 also fell by 435 points, or 1.8%, hitting a low of 24,074.20. By the end of the session, the Sensex closed at 80,429.04, down 73.04 points or 0.091%, and the Nifty finished at 24,479.05, down 30.20 points or 0.12%.

Trade Setup for Wednesday

Nifty Outlook: Rupak De, Senior Technical Analyst at LKP Securities, noted that a small-bodied candle formed on the daily chart after a bearish engulfing pattern, indicating a pause before the next movement. The Relative Strength Index (RSI) has entered a bearish crossover, leaving the overbought zone. The 24,550 level is likely to be an immediate hurdle for Nifty. If Nifty moves above 24,550, it might rally significantly, while support is at 24,480. A fall below 24,480 might lead to more selling pressure.

Bank Nifty Outlook: The index experienced a correction due to market weakness, slipping below the 21-day exponential moving average, indicating a weakening trend. Sentiment might stay weak short term unless the index moves above 52,100. It might drop to 51,200–51,000 on the lower end, with resistance at 52,100/52,550.

Stocks to Buy or Sell Today

Expert Recommendations

Stock market experts Sumeet Bagadia (Executive Director at Choice Broking) and Ganesh Dongre (Senior Manager of Technical Research at Anand Rathi) recommend the following stocks:

1. IPCA Laboratories Ltd
   • Buy at: ₹1,240
   • Target Price: ₹1,280
   • Stop Loss: ₹1,210
   • Reason: The stock shows a short-term reversal with a bullish engulfing pattern, indicating potential upward movement.
2. Cochin Shipyard
   • Buy at: ₹2,600
   • Target Price: ₹2,690
   • Stop Loss: ₹2,540
   • Reason: The stock has seen a bullish reversal pattern with potential retracement up to ₹2,680, supported at ₹2,540.
3. Max Financial Services Ltd
   • Buy at: ₹1,040
   • Target Price: ₹1,080
   • Stop Loss: ₹1,010
   • Reason: The stock has a bullish reversal pattern with potential retracement to ₹1,080, supported at ₹1,010.
4. TTK Prestige
   • Buy at: ₹914.8
   • Target Price: ₹960
   • Stop Loss: ₹880
   • Reason: The stock is showing strong bullish momentum, trading at a 52-week high and above key moving averages, with a positive RSI.
5. Zydus Lifesciences
   • Buy at: ₹2,277.15
   • Target Price: ₹2,380
   • Stop Loss: ₹2,190
   • Reason: The stock shows a steady upward trend with a higher high and higher low pattern, increased trading volume, and a positive RSI, trading above key EMA levels.

Additional Information

The stock market experienced heavy selling by Foreign Institutional Investors (FIIs) on Budget day, amounting to ₹2,975.31 crore. Experts also provided insights into various stocks and their potential impact following the budget announcements.