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Budget Day 2026 Pick: As the Union Budget 2026 approaches, market participants are increasingly focusing on stocks that display strong technical setups and clear trend confirmation.

PSU stock NTPC has emerged as Budget Day 2026 pick by Sumeet Bagadia of Choice Broking. The PSU stock is supported by a decisive breakout on the daily chart and improving momentum indicators. According to Sumeet Bagadia, Executive Director at Choice Equity Broking, the recent price behaviour suggests sustained demand and reinforces a bullish bias in the near term.

NTPC share price jumped 3.5% to its day's high of ₹360.50 in intra-day deals today, January 29, on the BSE. The stock has gained in the recent times. It has gained 11% in last 1 year.

The PSU stock has risen 6.7% in the past six month and 2.7% in three months and 10% in last 1 month. The stock is just 3% away from its peak of ₹371.10, hit in March 2025. However, it touched its 52-week low of ₹292, hit in February 2025.

Meanwhile, in the last 5 years, it has given multibagger returns soaring over 300%.

NTPC was trading around ₹348 and recently delivered a clear breakout above its trendline resistance. Post the breakout, the stock successfully retested the breakout zone and then moved higher, indicating strong acceptance of higher levels. This pattern highlighted renewed buying interest and suggested that the upmove was supported by genuine accumulation rather than short-term speculative activity.

“The post-breakout retest and move higher highlight strong acceptance of higher levels and renewed buying interest,” Bagadia said.

From a broader technical perspective, Bagadia said NTPC continued to trade in a higher high–higher low formation, confirming the presence of a well-established longer-term uptrend.

"The stock is comfortably trading above its key short- and long-term EMAs, highlighting robust trend strength. Recently, after a healthy retracement, the stock took strong support near the lower levels and staged a rebound accompanied by healthy volumes, signaling accumulation rather than distribution," he added.

The expert further stated that on the downside, immediate support for the stock was placed around the ₹340 zone. This level coincided with the previous breakout area as well as the 200-day EMA, making it a crucial demand zone. The convergence of these technical supports strengthened the overall setup and limited near-term downside risks for the stock.

Momentum indicators also remained constructive. The relative strength index was placed at 59.86, holding above the 50 mark and trending higher. This indicated improving momentum without the stock entering overbought territory, a combination often associated with sustainable uptrends rather than sharp, short-lived rallies.

"Based on technical parameters, investors may consider long positions near current levels, with dips offering accumulation opportunities up to ₹340, while maintaining positional support near ₹323 to manage downside risk," he predicted.

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 making any investment decisions.

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