Stock Market Strategy for Budget 2024: Experts Recommend Five Stocks to Buy or Sell on Tuesday — July 23

Ahead of the Union Budget 2024, the Indian stock market showed mixed results, closing lower for the second day in a row on Monday. The Nifty 50 index dropped 21 points to 24,509, the BSE Sensex fell 102 points to 80,502, and the Bank Nifty index gained 14 points, ending at 52,280. Trading volumes on the NSE decreased by 9.4%. Despite this, the overall market indicators were positive, with a 1.30:1 advance-decline ratio.

Market Outlook for Today

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that while the Nifty is holding above the 20 and 50-day SMA, the short-term trend remains downward. He mentioned, “Further declines are likely if the immediate support of 24,362 is broken. Any rebound might face resistance at 24,595 to 24,646.”

Dhupesh Dhameja, Technical Analyst at SAMCO Securities, commented on the Bank Nifty, stating, “The Bank Nifty is struggling to find direction, stuck in a narrow range. It managed to recover some losses but traded sideways, closing at 52,280, up 14 points. The index remains above its 20-day Exponential Moving Average, which is a key support level.”

Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, “The Budget is expected to focus on growth and rural economy measures, but the market has already anticipated this. Investors will be looking for further details, and we might see some volatility with sector-specific movements.”

Stocks to Buy Today

Experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommend the following stocks:

1. Ashok Leyland
   • Buy at ₹230.45Target: ₹245Stop Loss: ₹222
   Ashok Leyland is trading at ₹230, having broken out of a consolidation range. The stock has rebounded from its 50-day EMA and formed a bullish pattern with high trading volumes.
   
2. Deepak Nitrite
   • Buy at ₹2851.20Target: ₹3100Stop Loss: ₹2730
   Deepak Nitrite has broken out from an inverted head-and-shoulders pattern and is trading above ₹2850, suggesting it could reach ₹3100 in the short term.
   
3. Balkrishna Industries
   • Buy at ₹3158Target: ₹3300Stop Loss: ₹3080
   Balkrishna Industries has shown a bullish reversal pattern and could reach ₹3300, holding support at ₹3080.
   
4. State Bank of India (SBI)
   • Buy at ₹878Target: ₹910 Stop Loss: ₹858
   SBI has formed a bullish pattern on the daily chart, indicating potential upward movement. The target price is ₹910, with a stop loss at ₹858.
   
5. Tata Steel
   • Buy at ₹160
   • Target: ₹170
   • Stop Loss: ₹154
   Tata Steel shows a bullish reversal pattern, suggesting a rise to ₹170. The current support level is ₹154.

These recommendations are based on technical analysis and current market trends.