The Nifty index continued its upward trajectory ahead of the presentation of the Union Budget on 1st February. It closed firmly over 23,500 for the fifth session in a row.

As the index closed Friday at 23,508.40, it had a strong upward momentum, gaining 1.11% (+258.90 points). For the sixth day in a row, the Nifty Bank index had a strong closing over 49,300, continuing its positive trend ahead of the Union Budget. Strong upward momentum was evident as the index ended at 49,587.20, up 0.56% (+275.25 points).India VIX, a measure of market tension, fell 6.57% to 16.24, indicating a drop in volatility. Nevertheless, despite the encouraging trend, traders are advised to exercise caution as long as the VIX is over 15 since market uncertainty still exists.

Nifty Outlook On Budget Day

"Nifty's breakout above its previous swing high, coupled with five consecutive higher closes on the daily chart and sustained trade above the 20-day EMA, suggests a strong bullish bias. The RSI crossing above 50, further reinforces the probability of an extended uptrend. The key resistance at 23,670 remains a critical hurdle, as fresh call writing at this level signals supply pressure. Meanwhile, the 23,300-23,350 zone serves as a crucial support backed by put writers. As long as Nifty stays above 23,300, buying opportunities are expected to emerge, favouring a "Buy-on-Dips" strategy. A decisive move above 23,550 could accelerate the rally, setting the stage for further gains in the upcoming sessions," said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Prediction On Budget Day

"The Nifty Bank index has confirmed a breakout from its double bottom pattern, posting a higher close above its previous low for five straight sessions. Closing above the 20-Day EMA, coupled with the RSI approaching the 50 level, strengthens the case for a continued uptrend. The key resistance at 50,000 remains a challenge, backed by fresh call writing. The 49,000-48,900 support zone is critical, with strong put writing reinforcing this area. As long as the index stays above 48,900, buying opportunities are likely to emerge, supporting a "Buy-on-Dips" strategy. A decisive move above 49,600 could trigger further upside momentum, paving the way for continued gains in the sessions ahead," said Dhupesh Dhameja.

Stocks To Buy On Budget Day 2025

On February 1st, Budget Day 2025, Choice Broking's executive director Sumeet Bagadia recommended buying two stocks after the Nifty index showed a bullish candle with a large body on the daily chart, indicating significant upward momentum in the days to come.

Coal India

Buy in COALINDIA in Cash @ 396.50, Stop-loss @ 382, Target @ 422

COALINDIA is currently trading at Rs 396.50, having recently rebounded from a key support zone. The stock is on the verge of breaking out of its consolidation range on the daily timeframe and has already given a breakout from a falling trendline on the weekly timeframe, demonstrating strong upward momentum. A sustained move above the critical resistance level of Rs 410 could provide an ideal entry point for long positions, with a potential target of Rs 422. This breakout scenario is further supported by a noticeable increase in trading volumes, indicating robust buying interest among investors.

The Relative Strength Index (RSI) stands at 57.60 and is trending upward, signaling a healthy uptrend with room for further growth. Additionally, COALINDIA is trading comfortably above its 20-day EMA and is approaching its 50-day and 200-day EMAs. A close above these levels will further reinforce the prevailing positive trend.

Traders may consider entering at the current price of Rs 396.50, aiming for a target of Rs 422, with a stop-loss set at Rs 382 to manage risk effectively. While the trade setup appears promising, it is important to remain cautious of potential short-term volatility and adhere to proper risk management practices for successful execution.

Titan Company

Buy in TITAN in Cash @ 3490.25, Stop-loss @ 3368, Target @ 3735

TITAN is currently trading at Rs 3,490.25, having recently rebounded from a key support zone. The stock has formed a strong bullish candlestick pattern and is on the verge of breaking out from a consolidation channel on the daily timeframe. A breakout from this channel would further strengthen the reversal pattern, supported by increased trading volumes, indicating strong buying interest from investors. In the short term, the stock appears poised to target Rs 3,735.

The Relative Strength Index (RSI) stands at 61.71, reflecting a healthy uptrend with room for further growth. Additionally, TITAN is trading above its 20-day, 50-day, and 200-day EMAs, highlighting strong support from both short-term and long-term trends. Sustaining above the critical resistance level of Rs 3,550 could provide an ideal entry point for long positions.

Traders may consider entering at the current price of Rs 3,490.25, with a target of Rs 3,735 and a stop-loss at Rs 3,368 to manage risk effectively. While the trade setup appears promising, caution is advised due to potential short-term volatility. Adhering to robust risk management practices will be crucial for executing this trade successfully.