The last week of March started with a minor dip across Index Futures, hinting at investor pessimism and caution in the near term. However, the stock market rally, which started in October 2023, looks far from over.
Trading.biz analyst Rahul Nambiampurath mentions that the AI boom and the surety around Fed-driven rate cuts might still push the markets higher.
“With NASDAQ surging almost 24% over the past six months and Dow Jones scaling 16.08% since October 2023, the stock market still looks robust enough for a bullish 2024,” mentions Rahul.
Per the analyst’s analysis, four key stocks are flashing buy signals while the market breathes on March 25, 2024. The handpicked stocks and the associated sectors include:
- CrowdStrike (CRWD): Cybersecurity
- Eli Lilly (LLY): Healthcare
- Uber Technologies (UBER): Consumer Discretionary
- Microsoft (MSFT): Software
In the previous week’s market analysis, Rahul highlighted why Consumer Discretionary could be a big deal if the rate cuts happen. However, the cybersecurity and software (technology) boom is primarily led by the AI boom.
Risk-averse investors, more interested in funds than direct stock purchases, might have some reason to rejoice. Rahul has even handpicked a few ETFs that have the stocks mentioned above or other relevant picks, making them decent buys in 2024:
- iShares Expanded Tech-Software Sector ETF (IGV) for exposure to CrowdStrike and Microsoft.
- iShares U.S. Pharmaceuticals ETF (IHE) for exposure to Eli Lilly and other relevant companies.
- First Trust Consumer Discretionary AlphaDEX ETF (FXD) for exposure to Uber and other relevant stocks.
With MSFT and CRWD already up 15.60% and 35.68% year-to-date, led by sentiment-based surges, the focus lies on UBER and LLY going ahead. Plus, LLY is a pricey stock for most, which leaves us with UBER, which is pretty accessible at $80.23, according to Rahul’s analysis.
UBER is still trading inside an ascending channel with relatively steady momentum. However, if it manages to breach the $81.23 mark, there might be some buying potential.
Rahul cautions restraint as the RSI seems to be forming a hidden bearish divergence with the price, hinting at some near-term correction—until the $74.43 level. This might allow buyers to enter at a lower price.
Wall Street Analyst John Blackledge has a buy rating for UBER at a $90 price, which aligns with Rahul’s bullish view of the stock.
