Budget 2025 Special: Best Stocks To Buy On Live Trading Session On Budget Day

As the Union Budget 2025 approaches, investors are scrambling to decide which stocks to buy on Budget 2025 day because the Indian stock market will open for trade on Saturday. On Budget Day, everyone will be watching the government's forecasts and studies, which should offer significant fresh data on patterns in domestic growth. The government is estimating the GDP growth rate for FY26 conservatively in light of the recent muted GDP growth and the political unpredictability on the global stage. These are the stocks that the technical and derivatives experts at Angel One have recommended buying during the special trading session on Saturday, January 31, 2025, as the Nifty index has also risen above the 21-period EMA ahead of Budget Day, bolstering the positive trend.

Nifty Prediction

"From a technical perspective, the benchmark index has experienced a steep correction over the last couple of trading months, falling below its 20 EMA and 200 SMA on the daily charts. This recent decline has certainly dampened market sentiment, and the formation of lower lows and lower highs has triggered significant concerns for the near term. Furthermore, the index has formed a 'Falling Wedge' pattern on the daily chart and is currently hovering near the lower descending trendline of this wedge. While the market outlook has been bearish for the past 2-3 trading months, the current oversold conditions and the testing of crucial support levels suggest a shift from a strictly bearish stance to a cautious approach in the short term. On a broader time frame, such corrections have historically presented opportunities to accumulate fundamentally sound stocks for medium to long-term investment," said the technical and derivatives analysts of Angel One.

"On level specific front, since we are about to enter a crucial and major support zone of 22800 - 22400, from hereon, it would be very difficult to anticipate what the Union Budget has to offer and other global developments, but unless there is any major disappointment from the budget or any other global aberration, markets are likely to see some respite in the mentioned support zone any time soon. On the flip side, the 200 DSMA placed around 23800-24000 mark embarks a critical hurdle, coinciding with the higher band of the 'Falling Wedge' and a decisive breakthrough could only reverse the trend to Bullish stance and eventually can eye for the 25000 mark, followed by the lifetime highs in the higher spectrum timeframe," they further added.

Bank Nifty Outlook

"From a technical standpoint, Bank Nifty index is currently placed very close to where it started the year 2024, providing an opportunity of compounding gains from hereon. Though the placement below the 20 DEMA and 200 DSMA signifies a challenging phase in the short-term view. But from a broader term time frame, such historical trends suggest that such situations often lead to significant pullbacks. For now, the recent lows of 48000, followed by the election day closure around 46900 subzone is seen as a strong demand zone for the index. While a series of resistance is seen from 50000-50800 (200 DSMA) in the shorter duration. While a decisive breakthrough is likely to pave the way for renewed bullish momentum, targeting a retest of the lifetime high, which is nearly 11 percent above the current zone. This scenario underscores the potential for positive movement in the coming periods," the analyts of Angel One stated.

Stocks To Buy On Budget Day

Here are the stock picks by the brokerage firm Angel One for Budget day 2025.

Ashok Leyland

• The stock has faced selling pressure after peaking above 260 in September 2024.
• Historically, the stock has found support near the 89-EMA on the weekly chart, which is currently around the 200 level.
• On a longer degree chart structure, it is placed around the 20-EMA on a monthly chart which has acted as a strong support zone.
• Given the current technical placement and historical support at these levels, we expect a potential short-covering rally from this point. Hence, we would recommend buying this stock in the range of Rs. 200-205 for the targets of Rs.265 with a stop loss of Rs.189.

HAL

• Over the past 7 months, stocks have experienced consistent selling pressure, except for a brief recovery in November.
• The stock has now reached near the key support level of 20-EMA on the monthly chart and 89-EMA on the weekly chart.
• Historically, stocks in this sector tend to attract attention during the Budget period. Given the current technical setup, this stock appears poised for a potential rebound.
• Hence, we would advocate buying this counter in the range of Rs. 3650-3700 for a potential target of Rs. 4700 with a stop around Rs. 3480 marks.

JK Cement

• The stock has demonstrated notable relative strength in recent weeks, outperforming and holding higher grounds, despite considerable weakness in the broader market.
• The stock remains in a Primary uptrend, reinforced by the formation of a series of higher highs and higher lows.
• It is currently forming a bullish Cup and Handle pattern, indicating the potential for higher levels in the coming days. The volumes accompanying a potential breakout, were also on the higher side.
• From a technical perspective, the 14-day RSI remains in bullish territory, while the stock has consistently found support at its 20-DEMA in recent sessions. Additionally, it is trading comfortably above all major EMAs, reinforcing the positive outlook.
• We expect this ongoing outperformance to continue in the stock and hence recommend a buy in the range of 4880-4700, with a stop loss of 4320, for a target of 5780.

SBI

• After rallying nearly 80% from its early 2023 lows, SBIN has retraced to the 38.2% Fibonacci level of the prior up move, offering a favourable price location.
• The stock is currently trading near a strong short-term support band that has been respected multiple times since the beginning of last year.
• Technically, SBIN has also found support at its 89-EMA on the weekly chart, further reinforcing the sturdiness of the underlying support.
• Given the oversold conditions in the broader market recently, we anticipate a strong pullback in the coming days, with heavyweight stocks like SBIN expected to play a significant role in the recovery.
• Considering these factors, we recommend a buy on SBIN in the 755-735 price range, with a potential target of 875 and a stop loss at 700.

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.