Budget stocks 2026: The Indian stock market is trading on a jittery note in the penultimate session ahead of the Union Budget 2026 as investor preffered to stay on the sidelines ahead of the mega event and amid a global risk-off sentiment.

January has been a tough month for the stock market bulls as the stalled India-US trade deal, relentless FPI selling and weak Indian rupee, as well as lack of robust earnings growth, have kept gains in check. Nifty 50 has lost 3.33% in January so far.

Budget 2026, set to be unveiled by Finance Minister Nirmala Sitharaman on February 1, will set the tone for the Indian stock market going ahead. Investor expectations from the Budget remain deliberately low, as policymakers balance growth priorities with fiscal discipline amid global uncertainty.

With limited anticipation of big-ticket announcements, even selective measures could deliver positive market sentiment, opined domestic brokerage Motilal Oswal.

High capex in defence, infrastructure, affordable housing and capital goods could be a key focus area, while the brokerage also sees a few capital market measures aimed to assuage investor sentiments. The Finance Minister may also announce several procedural reform measures as well, continuing with its endeavours to improve the ease of living and ease of doing business.

Budget stocks 2026

For investors looking to make the most of Budget day, as the markets will open on Sunday, February 1, technical analysts that Mint reached out to have listed five stocks that can be good bets. Among the stocks to buy ahead of the Budget, analysts have recommended Titan, Garden Reach Shipbuilders, Grasim, Coal India and PFC.

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, recommended buying Coal India and PFC.

PFC | Buying Price: 385–380 | Target: ₹420 | Stop loss: ₹365

The Nifty PSE Index is inching closer to a significant breakout, supported by improving sentiment ahead of the Union Budget 2026, which typically triggers strong interest in government-owned enterprises. Within this setup, PFC has emerged as one of the most promising candidates. The stock had been moving within a falling channel since early January, indicating a phase of consolidation and temporary supply pressure. However, it has now delivered a decisive breakout from this pattern, accompanied by a sharp jump in trading volumes, clearly reflecting fresh institutional and retail buying interest.

Momentum indicators further strengthen this bullish outlook. The RSI, which previously struggled to sustain above the 60 level, has now convincingly crossed this threshold, suggesting a renewed pickup in bullish momentum. A noteworthy technical confirmation comes from the ADX, where the DI+ crossing above DI– signals strengthening trend force in favour of the bulls.

Given this strong confluence of breakout structure, volume expansion, and improving momentum, the outlook remains positive. We recommend accumulating PFC in the 385–380 zone, with a stop-loss at 365. On the upside, the stock is well placed to move towards 420 in the short term.

Coal India | Buying price: 450–445 | Target: ₹500 | Stop loss: ₹430

Coal India continues to exhibit strong technical strength after delivering a breakout above its previous swing high on January 2nd. Following this move, the stock entered a healthy consolidation phase, trading within a well-defined range of 412–442 for several sessions. This rangebound movement allowed the stock to digest earlier gains and absorb supply. Now, Coal India has once again broken out of this consolidation band, supported by a noticeable rise in volumes over the past two trading sessions, indicating a revival of aggressive buying demand.

Momentum indicators are also showing robust improvement. The RSI has surged sharply from 52 to 69 within just five sessions, highlighting accelerating bullish momentum. The midline of the Bollinger Bands acted as a dependable support area during the consolidation, from where fresh buying emerged, confirming underlying strength. The combination of price action, improved trend structure, and strong momentum signals points toward a continued move higher in the short term.

Given the favourable technical setup, we recommend accumulating Coal India in the 450–445 zone, with a stop-loss at 430. The stock is likely to extend its up move towards 500 in the short term.

Hitesh Tailor, Technical Research Analyst at Choice Broking, has buy calls on Titan, GRSE and Grasim.

Titan | Buy price: ₹3975.20 | Target: ₹4500 | Stop loss: ₹3700

Titam is currently trading around ₹3,975.20 and continues to exhibit a strong bullish structure in the longer-term trend, characterised by a consistent higher high–higher low formation, reflecting sustained strength and trend continuity. Recently, the stock has delivered a decisive, wider-range horizontal breakout, supported by healthy volumes, indicating strong institutional participation and confirming the validity of the breakout.

Post breakout, Titan is undergoing a healthy retracement toward the breakout support zone, which is closely aligned with the 20-week EMA, highlighting a constructive pullback rather than a trend reversal. This price behaviour suggests strong demand emerging at lower levels and reinforces the medium- to long-term bullish outlook. On the weekly chart, the stock continues to trade comfortably above its 20-, 50-, 100-, and 200-week EMAs, all of which are sloping upward, underscoring the strength of the prevailing trend.

Momentum indicators further support the positive bias, with the RSI at 58.25 on the weekly chart, sustaining above its support zone and trending upward, signalling improving momentum without entering overbought territory. Based on technical parameters, investors may consider long positions near current levels, with dips offering accumulation opportunities up to ₹3,850, targeting ₹4,500, while maintaining a stop loss at ₹3,700 to manage downside risk.

Garden Reach Shipbuilder | Buy price: ₹2518.70 | Target: ₹2900 | Stop loss: ₹2325

GRSE is currently trading around ₹2,518.70 and continues to maintain a positive long-term structure, characterised by a consistent higher high–higher low formation, which reflects an intact primary uptrend. Recently, the stock has witnessed a healthy retracement, during which it successfully took support near the 0.50 Fibonacci retracement level, aligned with the 50-week EMA. This confluence support has acted as a strong demand zone, from where the stock is now moving higher, indicating renewed buying interest and strengthening bullish sentiment.

From a broader technical perspective, GRSE is trading firmly above its 20-, 50-, 100-, and 200-week EMAs on the weekly chart, all of which are positively aligned, underscoring the strength of the prevailing trend. Momentum indicators also support the constructive outlook, with the RSI at 51 on the weekly chart, taking support near lower levels and turning upward, suggesting a gradual pickup in momentum without overbought conditions.

Based on these technical parameters, investors may consider long positions near current levels, with dips offering accumulation opportunities up to ₹2,400. The stock has the potential to move toward a target of ₹2,900, while maintaining a stop loss at ₹2,325 to manage downside risk.

Grasim | Buy price: ₹2839.10 | Target Price: ₹3225 | Stop loss: ₹2650

Grasim is currently trading around ₹2,839.10 and continues to exhibit a positive long-term structure, characterized by a higher high–higher low formation, indicating that the primary uptrend remains intact. In the near term, the stock is consolidating in a sideways range formation, but importantly, this consolidation is occurring within a rising trend, supported by a consistently upward-sloping 50-week EMA, which is acting as a dynamic support and reflecting sustained institutional demand.

From a broader technical perspective, GRASIM is trading comfortably above its 20-, 50-, 100-, and 200-week EMAs on the weekly chart, all of which are positively aligned, reinforcing the strength of the prevailing trend. Momentum indicators remain constructive, with the RSI at 54.55 on the weekly chart, taking support near lower levels and stabilising, which suggests improving momentum and a favourable risk-reward setup without signs of overbought conditions.

Based on technical parameters, investors may consider long positions near current levels, with dips offering accumulation opportunities up to ₹2,725. The stock has the potential to move toward a target of ₹3,225, while maintaining a stop loss at ₹2,650 to manage downside risk.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.