Shares to buy before Budget 2025: Prashanth Tapse of Mehta Equities suggests these three stocks to buy in the short term | Stock Market News

Stock market today: The benchmark indices of the Indian stock market, Sensex and Nifty 50, increased by 1% each on Friday, following the presentation of the Economic Survey 2025 report in Parliament.

Today, Finance Minister Nirmala Sitharaman presented the Economic Survey in the Lok Sabha in anticipation of the Union Budget 2025-2026, which will be unveiled on Saturday, February 1, 2025.

On Friday, the Sensex rose by as much as 1.03%, reaching a peak of 77,549.92, while the Nifty 50 climbed 1.21%, hitting a high of 23,530.70. Over the last four sessions leading up to the Budget 2025 announcement, the benchmark Sensex has surged nearly 2,000 points.

In early trade on Friday, both Sensex and Nifty 50 saw a significant rally, largely driven by buying interest in Larsen & Toubro following its earnings announcement. Additionally, a positive trend in the US markets contributed to the upward movement. The Sensex gained 188.11 points, reaching 76,947.92, while the Nifty 50 increased by 68.6 points to settle at 23,318.10. This surge comes just a day ahead of the anticipated Union Budget, creating an optimistic sentiment among investors, according to analysts.

On the global front, most Asian markets edged up on Friday as the week came to a close, following a period of significant volatility. This fluctuation in markets was largely influenced by the announcement from China’s DeepSeek about the launch of a groundbreaking chatbot that reportedly rivals the capabilities of leading US AI companies, but at a mere fraction of the investment costs.

However, optimism was tempered by US President Donald Trump’s confirmation of hefty tariffs on Canada and Mexico, which raised concerns among traders about the potential for escalating trade tensions. These developments have kept investors on edge, leading to mixed sentiments across the markets.

Market Views – Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

Nifty 50

The benchmark index is witnessing strong selling pressure between the 23,300 – 23,400 zone, which acts as a major resistance level. A pullback support is expected around the 23,000 – 23,100 zone, with the market moving in a range ahead of the budget. If the index breaks above 23,400 with follow-up buying, the rally could extend towards the 24,000 level. However, a break below 23,000 would negate this view.

Bank Nifty

Bank Nifty has major resistance at 49,650 and key support at 47,800. Currently, it is trading within a narrow range of 48,750 – 49,500 before any significant upmove or downmove. Ahead of the budget, the index remains range-bound. A breakout above 49,650 could trigger a major short-covering rally in banking stocks, while a breakdown below 47,800 would negate this bullish outlook.

Shares to buy for short term

Prashanth Tapse recommends buying these three stocks in the short term – Cyient Ltd, Afcons Infrastructure Ltd, and Mahindra & Mahindra (M&M).

Cyient Ltd

Buy / CMP: ₹1,404 /Stop Loss: ₹1,340 /Target: ₹1,500

The stock has given a strong breakout above its recent swing high resistance level of ₹1,405 and is holding well above this mark. A strict stop loss at ₹1,340 is recommended, as the stock is poised for an upside move towards ₹1,500 and beyond. The potential for major short-covering and a strong technical structure indicating a price reversal makes this a favorable buy.

Afcons Infrastructure Ltd

Buy / CMP: ₹459 /Stop Loss: ₹435 /Target: ₹490

Afcons has touched its major support level at ₹450 and is showing signs of bullish momentum from these levels. The low risk from the current price and indications of a price reversal suggest that the stock is poised for an upside move towards ₹490 and beyond. Increasing volumes at lower levels further strengthen the positive outlook.

Mahindra & Mahindra (M&M)

Buy / CMP: ₹3,030 / Stop Loss: ₹2,950 / Target: ₹3,100

The stock is breaking out above its immediate resistance level of ₹3,005, accompanied by a strong spike in volumes. RSI (14) at around 55, showing signs of an upward move, is a positive indicator. A strict stop loss at ₹2,950 is advised, with upside targets of ₹3,100 and above. The low-risk and attractive reward potential make this an interesting opportunity at current levels.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.