1: Abraham's contact number john saved in the phone.
2: John saved abraham's contact number in the phone.
Which one is grammatically correct? My teachers are saying that both of these are correct but it seems that second is correct.
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The first sentence is strange enough that it would never normally be used. It is sometimes called "Yoda" grammar, (due to it being the way that Yoda from Star Wars speaks). It would benefit from a comma:
Abraham's contact number, John saved in the phone.
As a learner you would never use this syntax. It is not a simple alternative to second sentence. It would be more acceptable to say
Abraham's contact number? John saved it in the phone.
In some context in which the verbless first sentence is conversationally checking for understanding "Are you talking about Abraham's contact number?"