Garnacha or Tempranillo are the Spanish wines recommended for this sangria, though any red wine you would enjoy on its own will work. A bottle in the $10-$15 price range was recommended. The Tempranillo I found here in Puerto Rico was either two bottles for $9 or one for $8. I went for the $8 bottle, and it made a delicious Sangria. I used Garnacha in the states.
Also, I added Triple Sec as a budget-friendly orange liqueur option. I used Triple Sec and brandy, and I even used a Pomegranate Grape Blend juice because I couldn't find Pom Wonderful in the stores here.
Source: Once Upon a Chef