NTPC Emerges as Prime Budget 2026 Selection with Robust Technical Setup
As the Union Budget 2026 draws nearer, market participants are intensifying their focus on equities that demonstrate compelling technical configurations and unambiguous trend validation. In this context, PSU stock NTPC has surfaced as the Budget Day 2026 pick designated by Sumeet Bagadia, Executive Director at Choice Equity Broking. This selection is underpinned by a decisive breakout observed on the daily chart alongside improving momentum indicators, suggesting sustained demand and reinforcing a bullish outlook for the near term.
Price Performance and Technical Breakout Details
NTPC's share price exhibited notable strength, jumping 3.5% to reach an intra-day high of ₹360.50 on the BSE today, January 29. The stock has demonstrated consistent gains across multiple timeframes:
- An impressive 11% appreciation over the last year
- A solid 6.7% rise during the past six months
- A 2.7% increase in the previous three months
- A substantial 10% surge in the last month alone
Currently trading merely 3% below its peak of ₹371.10 achieved in March 2025, NTPC has shown remarkable resilience despite touching its 52-week low of ₹292 in February 2025. Most strikingly, the stock has delivered multibagger returns exceeding 300% over the last five-year period.
Technical Analysis and Expert Commentary
From a technical perspective, NTPC was trading around ₹348 when it recently executed a clear breakout above its trendline resistance. Following this breakout, the stock successfully retested the breakout zone before advancing further, indicating robust acceptance of elevated price levels. This pattern highlights renewed buying interest and suggests that the upward movement is supported by genuine accumulation rather than transient speculative activity.
"The post-breakout retest and subsequent advance underscore strong acceptance of higher levels and renewed buying interest," emphasized Bagadia. He further elaborated that NTPC continues to trade in a higher high–higher low formation, confirming the presence of a well-established longer-term uptrend.
Support Levels and Momentum Indicators
The stock is comfortably trading above its key short- and long-term Exponential Moving Averages (EMAs), highlighting robust trend strength. After a healthy retracement, NTPC found strong support near lower levels and staged a rebound accompanied by healthy volumes, signaling accumulation rather than distribution.
On the downside, immediate support for the stock is positioned around the ₹340 zone. This level coincides with the previous breakout area as well as the 200-day EMA, rendering it a crucial demand zone. The convergence of these technical supports strengthens the overall setup and limits near-term downside risks.
Momentum indicators remain constructive, with the Relative Strength Index (RSI) placed at 59.86, holding above the 50 mark and trending higher. This indicates improving momentum without the stock entering overbought territory—a combination often associated with sustainable uptrends rather than sharp, short-lived rallies.
Investment Strategy and Recommendations
Based on technical parameters, Bagadia suggests 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. The recommended strategy involves buying NTPC at ₹348 and up to ₹340 for targets of ₹383 and ₹400.
Disclaimer: The views and recommendations presented above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult with certified experts before making any investment decisions.
