Budget 2025: ICICI Bank, Bajaj Finance among Motilal Oswal's top 5 technical stock picks

The Union Budget has historically played a crucial role in shaping stock market trends by significantly influencing sectoral movements based on government policies and financial plans. The upcoming Union Budget is expected to focus on capital expenditure, drive manufacturing growth, and maintain macroeconomic stability.

Finance Minister Nirmala Sitharaman is set to present the Union Budget on February 1, 2025, at 11 AM, a highly anticipated event for investors and market participants.

Technical Market Outlook

Brokerage firm Motilal Oswal Securities Limited (MOSL) has released its pre-budget technical stock picks, offering insights into potential investment opportunities amid market volatility.

“Our markets have seen a sharp correction in the past few months, which appears to be a short-term corrective phase within a broader long-term uptrend. The Nifty index has crucial support in the 22,800-22,500 range, making the risk-reward ratio favourable at current levels. We advise traders to adopt a basket approach with a focus on large-cap stocks ahead of the Union Budget 2025,” MOSL noted in its report.

Pre-Budget Technical Stock Picks by MOSL

Here are the top five technical stock recommendations by the brokerage:

ICICI Bank: The stock has found support near its crucial 200-day exponential moving average (DEMA) and has formed a reversal pattern. It has also given a trend line breakout on the daily chart and is showing relative outperformance within the Nifty Private Bank space.

Bajaj Finance: Despite the broader market weakness, the stock has held onto its gains and is on the verge of a flag breakout above the 7,500 mark, indicating potential upside.

SRF: The stock is poised for a narrow-range breakout on the weekly chart above 2,635 levels and a Pole and Pennant breakout on the daily scale, suggesting bullish momentum.

Eicher Motors: The stock has successfully retested its breakout level on the daily chart and moved higher. It continues to trade above its 50-DEMA, with the Relative Strength Index (RSI) showing positive momentum.

UltraTech Cement: The stock has formed a strong support base in the 10,500-10,700 range and has witnessed an uptick with significant volumes, signaling a bullish trend.

With the Union Budget 2025 around the corner, investors are closely monitoring policy announcements and their potential impact on market trends. MOSL’s technical recommendations highlight key stocks poised for potential gains, offering insights for traders looking to navigate the market ahead of Budget Day.

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