Stocks To Buy On Budget Day: How To Trade Emami & Orient Cement On 23rd July?

The Indian stock market began trading higher on July 23 in preparation of Finance Minister Nirmala Sitharaman's announcement of her seventh budget for FY25. The Nifty 50 reached the day's high of 24,582.55, while the Sensex reached an intraday high of 80,766.41. Sumeet Bagadia, executive director of Choice Broking, recommended two stocks to buy for investors who are searching for stocks that have higher upside potential today.

Nifty Outlook Today

" Technically, the index on a daily scale has formed a bearish engulfing candle and on a weekly scale, it has formed a shooting star candle, indicating weakness. Thus, as long as the index remains below 24,855, a sell-on-rise strategy needs to be adopted in Nifty," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bank Nifty Outlook Today

"Technically, on the daily scale, the index has formed an inside bar candlestick pattern. However, the index managed to defend the 21-DEMA support of 52,030 levels. Thus, Bank Nifty will find strong support near 52,000 levels. On the upside, 52,800 and 53,000 will serve as strong resistance levels," recommended Hrishikesh Yedve.

Stocks To Buy Today

On Budget Day, Choice Broking's executive director Sumeet Bagadia gave two stock recommendations.

Emami

Buy EMAMILTD in cash @ 800.45,stop-loss: Rs 772, target: Rs 845

EMAMILTD daily chart analysis offers a favourable view for the following week, indicating a steady higher advance. Notably, the stock has produced a notable higher high and higher low pattern, and the company's recent upward swing has effectively violated the neckline, establishing a new week high. This breakthrough indicates the possibility of a significant follow-through upward increase in the stock price.

Adding to the positive momentum, the recent breakout above previous resistance levels further solidifies the bullish outlook. There has been an increase in trading volume, indicating growing market interest. The stock formed a strong bullish sentiment signifying a potential continuation of the uptrend following and the daily strength indicator RSI (14) is moving upwards and positioned above its reference line indicating a positive bias. Furthermore, EMAMILTD is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying EMAMILTD in cash at CMP of 800.45 for the target of 845 with a stop loss of 772.

Orient Cement

Buy ORIENTCEM in cash @ 334.35, stop-loss: 324, target: 350

ORIENTCEM is currently trading at Rs 334.35. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of Rs 320 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 350 levels. On the downside, substantial support is evident near Rs 324.

Furthermore, ORIENTCEM is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 75.92, signalling an upward trajectory and confirming an increase in buying momentum. .

In summary, considering the technical analysis and prevailing market conditions, ORIENTCEM appears to present a promising buying opportunity for those targeting a Rs 350 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 324 to protect the investment in case of an unexpected market reversal.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.