Stocks to buy or sell: After Finance Minister Nirmala Sitharaman proposed to increase capital gains taxes in her Budget 2024 speech, Indian stock market sentiment has turned slightly negative. The market, however, seems to be taking comfort from the Budget's focus on fiscal prudence and capital expenditure on key sectors. Following a flattish close with negative bias in the previous session, market benchmarks- the Sensex and the Nifty 50- fell about 0.30 per cent each in the morning session.
Market experts believe that increased LTCG (long-term capital gains) and STCG (short-term capital gains) taxes are short-term dampeners, and investors' focus will eventually shift to corporate earnings, macroeconomic prints, and global cues.
Experts highlighted that the Budget 2024 maintained a delicate balance between economic growth and financial stability. They pointed out that the fiscal consolidation efforts within the Budget are a significant positive aspect that should not be overlooked, even amidst concerns over the rise in capital gains tax.
Experts also believe eliminating indexation benefits for gold and real estate will position equity as a relatively superior asset class.
Stock market today: After a 0.1 per cent decline in the previous session, Nifty 50 opened at 24,444.95 against its previous close of 24,479.05 and slipped about 0.3 per cent to the level of 24,395. Around 9:50 am, the index was 0.28 per cent down at 24,411.
Shares of Hindustan Unilever, Tata Consumer and Nestle were among the top losers in the index, while those of ITC, HDFC Life and Tata Motors were among the top gainers in the index at that time.
Technical experts point out that the index has a resistance range of 24,550-24,590.
"The level of 24,000 acted as a base for bulls to regroup as expected, but the MACD bearish crossover still clouds the prospects of the continuity of this reversal attempt. The 24,550-24,590 zone is likely to act as the immediate hurdle for the index, while the 24,360-24,250 range should lend support for the day. A breach of 24,000 could lead to further downside risks, with the next support zone lying between 23,055 and 23,000," said Anand James, Chief Market Strategist, Geojit Financial Services.
On being asked about the breakout stocks, Sumeet Bagadia, Executive Director at Choice Broking, recommends buying these five intraday stocks in the cash segment: Gravita India, EMS Limited, Pondy Oxides & Chemicals, NIIT and AstraZeneca Pharma India.
Gravita India | Buy at ₹1,715 | Target price: ₹1,800 | Stop loss: ₹1,650
EMS Limited | Buy at ₹769.05 | Target price: ₹810 | Stop loss: ₹745
Pondy Oxides & Chemicals | Buy at ₹1,038.5 | Target price: ₹1,090 | Stop loss: ₹1,000
NIIT | Buy at ₹121.15 | Target price: ₹127 | Stop loss: ₹117
AstraZeneca Pharma India | Buy at ₹7,067.6 | Target price: ₹7,444 | Stop loss: ₹6,800
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
