Indian Union Budget 2021-22: With just a week left for Union Budget 2021, Indian share markets are witnessing intense volatility. In the week gone by, BSE Sensex went previous the important 50,000 and Nifty 50 crossed the psychological level of 14,750. Benchmark indices ended the week on a flat note with a damaging bias. Analysts count on this higher volatility to continue for next couple weeks. Ahead of Budget, industry watchers advise a couple of sectors and stocks which may possibly stay in concentrate throughout this week. Earlier on Saturday, Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur and senior officials of the finance ministry participated in the Halwa Ceremony, marking the starting of compilation of price range documents. On the back of COVID-19, this year price range documents will be distributed electronically to the Members of Parliament (MPs). Here are a couple of best sectors and stock picks for ahead of Budget 2021:
Sanjiv Bhasin, Director, IIFL Wealth
Sanjiv Bhasin believes that stocks of Divis Laboratories Ltd (Target Rs 4500), Sun Pharmaceuticals (Target Rs 700), ICICI Prudential Life Insurance Company (Target Rs 700), HDFC Life Insurance Company (Target Rs 850), Jindal Steel and Power (Target Rs 375), ACC (Target Rs 2,200) and HCL Technologies (Target Rs 1,250) are probably to be important beneficiaries of Union Budget 2021. Bhasin has advisable to obtain these stocks ahead of price range and hold them till Diwali 2021.
Ajit Mishra, VP-Research, Religare Broking
Ajit Mishra believes stocks such as Hindustan Unilever Ltd (HUL), Dabur India, Emami, and so forth will advantage from rural development and more discretionary earnings in the hands of buyers. Also, more funds and measures taken for farmers would be positive for providers like Coromandel International Ltd, Rallis India, and so forth. Infrastructure push will be positive for sectors such as capital goods, realty, cement and for stocks such as L&T, ABB India, Ramco Cements, Ambuja Cements, ACC and so forth. In the auto sector, providers such as Maruti Suzuki, Ashok Leyland, Bajaj-Auto, Mahindra & Mahindra are anticipated to advantage only if there will be some deduction in auto loans or interest.
Rajesh Palviya, Head Technical & Derivatives Research, Axis Securities Ltd
Solara Active Pharma Science Ltd: Palviya has recommended a obtain variety of Rs 2840-2784 for Solara Active Pharma Science Ltd and a target value of Rs 3035-3080. The day-to-day and weekly strength indicator RSI and the momentum indicator Stochastic each are in bullish mode and placed above 50 mark which supports increasing strength.
Polycab India: Rajesh Palviya advisable to obtain the Polycab India stock in variety of 1278-1245 with an upside target of 1400-1440. Currently stock is effectively placed above its 20, 50, one hundred and 200-day SMA which reconfirm out bullish thesis. On the weekly chart, the stock has decisively broken out its 1 year Resistance zone of 1185 levels displaying bulls self-assurance.
Phillips Carbon Black: The stock has a obtain variety of Rs 198-193 and a target value of Rs 225-230. The stock has observed a powerful breakout from its six weeks“Consolidation Range” (160- 183) indicating bulls are in handle . Increased volumes activity signals a very good sign of enhanced participation on breakout.
Apollo Tyres: The stock has formed a big bullish candle on the weekly chart with massive volume indicates powerful purchasing momentum in stock. Currently stock is effectively placed above its 20, 50, one hundred and 200-day SMA which reconfirm out bullish. The purchasing variety for Apollo Tyres is Rs 231-225 and value target of Rs 260-268.
Rajesh Agarwal, Head of Research, AUM Capital Market
IRCTC: Rajesh Agarwal has pegged a target value of Rs 1,600-1,900 for Indian Railway Catering and Tourism Corporation stock. Agarwal favors this business on the back of virtual monopoly, powerful earnings profile, diversified company segment, higher entry barrier to the company with affordable valuation.
Jindal Steel and Power Ltd: JSPL stock has a target of rs 350 apiece for next six to nine months. The firm reported highest-ever steel production volumes and it was India’s 1st private business to get the ‘regular supplier’ status from Indian Railways. On the back of buoyant overseas and domestic demand, this stock has a ‘buy’ contact.