Market gives mixed response for the Budget

No cheer for the Indian benchmark indices, the Sensex and Nifty 50, on Budget Day as indices closed the day on a flat note. Nifty was down marginally by 0.11 per cent and Sensex was flat and up 0.01 per cent. The Nifty Bank index was down 0.16 per cent. Compared to the benchmarks, the small and midcap indices saw higher activity. The BSE Midcap index was down 0.49 per cent and BSE Smallcap index was up 0.28 per cent.

Among the sectors in the BSE, Realty index surged the most, gaining 3.69 per cent. Major tax relief for the middleclass gave a boost to the Fast-Moving Consumer Goods (FMCG) sector. The BSE FMCG index rose 2.91 per cent. Among the losers, the BSE Capital Goods index, down 3 per cent, was beaten down the most.

Here are four stocks that look attractive on the charts after the Budget today. These stocks are picked from the top performing sectors of the day. The analysis and forecast are purely based on technical analysis. Investors should do proper due diligence and have proper risk management strategies in the form of stop-loss before investing.

Tata Consumer Products (₹1,069.50)

The stock has surged about 17 per cent since the beginning of this year. This rally is happening from around a key trend support level of ₹940. It also marks the end of the downtrend that was in place since September end last year. Tata Consumer Products share price has potential to target ₹1,400-1,450 over the next three-four quarters. Intermediate resistance is in the ₹1,100-1,200 region. Immediate support is at ₹1,000. Below that ₹980-960 is the next strong support. We see high chances for the share price to sustain above the psychological ₹1,000 mark itself. This bullish view will go wrong only if the share price declines below ₹900. If that happens, a fall to ₹800 and lower is possible.  

Eicher Motors (₹5,388)

The stock had begun the year on a positive note by making a bullish breakout of its sideways range in the first week of January. Prior to this rise, the Eicher Motors stock has been in a prolonged consolidation phase since May last year. Support is now around ₹5,200. A lower support is at ₹4,950. Immediate resistance is at ₹5,450. The chances are high for the stock to break this resistance. Such a break can take Eicher Motors share price up to ₹6,100 in the next two-three quarters. The bullish view will get negated only if the stock falls below ₹4,950. In that case, the stock can fall to ₹4,650 or ₹4,500. But, such a fall looks unlikely. We expect the stock to sustain above ₹5,200 itself as fresh buyers are likely to come in at this level and limit the downside.

Macrotech Developers (₹1,265)

The stock snapped a three-week decline by appreciating last week. It has rebounded after finding support at ₹1,060. The long-term chart shows that the price band of ₹1,000-1,060 is a considerable support band. We expect the stock of Macrotech Developers (Lodha) to increase over the medium term, potentially reaching ₹1,800 before the end of this year. On the way up, there is a supply zone between ₹1,400 and ₹1,500. On the back of this, the stock price might moderate to ₹1,300. Eventually, we anticipate the stock to break out of ₹1,500 and rally to ₹1,800. That said, if the stock slips below the support at ₹1,000, the outlook will turn bearish where it could fall to ₹800.

Havells India (₹1,656.50)

The stock of Havells India has been depreciating since the final week of September last year. The resistance at ₹2,050 triggered the sell-off. However, it found support at ₹1,500 recently, which arrested the slide. Adding to its significance, the stock has rebounded from ₹1,500. The daily chart shows that the stock has also formed a high on the daily chart, adding to the bullishness. Within a year from now, the stock can surpass the resistance at ₹2,050 and touch ₹2,200. But note that there is a considerable barrier at ₹1,775. Although this cannot alter the trend. On facing ₹1,775, the stock is expected to see only a minor correction, possibly to ₹1,650, and then resume the up move to ₹2,200. A breach of ₹1,500 can trigger a fall to ₹1,375.