As the Indian stock market prepares for the Union Budget 2026-27, scheduled to be presented on Sunday, 1st February 2026, traders are advised to exercise caution amid heightened volatility. The stock markets will remain open on Sunday for a special session, while the commodity markets will operate from 9:00 AM to 5:00 PM.
Market Trading Schedule on Budget Day:
- Stock markets (NSE and BSE): Open from 9:15 AM to 3:30 PM on Sunday.
- Commodity markets: Open from 9:00 AM to 5:00 PM.
- Note: Traders will not be able to sell cash stocks bought on Friday or during the Sunday session for settlement on Monday.
Market Outlook and Trading Strategy:
Market analysts warn that Budget Day often witnesses extreme volatility, with rapid price swings that can trigger losses for retail traders. Santosh Meena, Head of Research at Swastika Investmart, highlighted that the absence of institutional liquidity on a Sunday could lead to erratic movements primarily driven by retail sentiment. He advises traders to remain cautious and wait for the market to stabilize, likely after the initial reactions on Monday.
Shrikant Chouhan of Kotak Securities expects a range-bound movement for Nifty and Sensex, with support levels around 25,200/82,000 and resistance near 25,500/82,800. Similarly, Dr. Ravi Singh from Master Capital Services pointed out that the Bank Nifty could see support around 59,300–59,250, with resistance at 60,000, emphasizing elevated volatility ahead of the budget.
Gold and Silver Price Movements:
Following a margin hike on the Chicago Mercantile Exchange (CME), gold and silver prices experienced sharp declines. COMEX gold closed over 11% lower at $4,763.10 per ounce, about 15% below its record high of $5,625.16. Silver prices also dropped significantly, declining over 31% from their lifetime high.
On the domestic front, MCX gold futures for April ended at ₹1,50,849 per 10 grams, down ₹1,496 (0.98%). MCX silver futures for March settled at ₹2,91,922 per kg, approximately 30.50% below the record high.
Experts suggest that potential reductions in import duties to support the gems and jewelry sector could influence gold and silver prices post-Budget.
Top Eight Stocks to Watch During Budget 2026:
Market analysts have identified several stocks that could present trading opportunities:
- Nestle India: Buy at ₹1332; target ₹1426; stop loss ₹1285.
- GESHIP: Buy at ₹1202; target ₹1286; stop loss ₹1160.
- BEL: Buy at ₹449; target ₹462; stop loss ₹442.
- Deepak Fertilisers: Buy at ₹1055; target ₹1100; stop loss ₹1020.
- Paytm: Buy at ₹1037; target ₹1100; stop loss ₹1010.
- Cummins India: Buy at ₹4112; target ₹4300; stop loss ₹4020.
- RailTel: Buy at ₹353.40; target ₹375; stop loss ₹345.
- Cemindia Projects: Buy at ₹639.45; target ₹677; stop loss ₹625.
Experts emphasize that these picks are for intraday trading and advise investors to conduct thorough research or consult certified professionals before making any investment decisions.
Disclaimer: This report is for educational purposes only. The views expressed are those of individual analysts and broking firms and do not constitute investment advice.