Buying on dips offers a superior risk-reward, while avoiding aggressive trades into the gap and keeping leverage low is advised, said Ashish Kyal.
It would be crucial for the markets to go back inside the original 500-point trading zone created between 26,200 and 25,700. If this happens, then the primary trend would stay intact, said Milan Vaishnav.
US President Donald Trump announced a trade deal with India on Monday, reducing the tariff rate on Indian goods to 18 percent from 50 percent, on the condition that India should stop buying Russian oil and lower trade barriers.
Technically, if the Nifty 50 surpasses and sustains above the crucial resistance zone of 25,600–25,700 on February 3, the entry into bullish momentum could drive the index toward the psychological 26,000 zone in the upcoming sessions.
The market is expected to return to strong momentum, especially after the United States reduced tariffs on Indian goods to 18 percent from 50 percent. Below are some short-term trading ideas to consider after the India–US trade deal.
Stocks to Watch, 03 Feb: Stocks like UPL, PB Fintech, Awfis Space Solutions, Thermax, Indus Towers, Paradeep Phosphates, Akzo Nobel India, Aarti Industries, Chalet Hotels, Honeywell Automation India, PG Electroplast, and Aditya Birla Lifestyle Brands will be in focus on February 3.
Follow-up buying interest is needed for bulls to regain control, which now appears possible in the upcoming sessions as the US reduced reciprocal tariffs on Indian goods to 18 percent from 25 percent.
Weekly options data indicated that the Nifty 50 may trade in the range of 24,800–25,500 in the short term, as a break on either side of the range could provide a firm directional move.
The bearish sentiment prevailed in the market, with the Nifty 50 decisively trading below all key moving averages and the momentum indicators generating sell signal.
The market may consolidate near the previous day’s low after the sharp correction. Below are some short-term trading ideas to consider.
The index slipped decisively below the 200-day EMA—the last key EMA support—and hit a five-month low, with momentum indicators flashing sell signals.
Apollo Hospitals Enterprises, Mahindra & Mahindra, Biocon, and Larsen & Toubro among 9 stocks that could be considered for investment post the Union Budget.
Markets witnessed biggest Budget Day fall in 6 yrs. Earlier, on February 1, 2020, the Sensex had ended 987.96 points, or 2.42 percent, lower.
Weekly options data suggest that 25,000 is likely to act as immediate resistance, while 24,500 is seen as immediate support for the Nifty 50.
Analysts said the Nifty needs to hold above the 25,350 level to extend its upward move towards 25,600.
Looking ahead, volatility is expected to pick up sharply over the next 2–3 sessions, with the Union Budget 2026 scheduled to be presented by the Finance Minister on February 1.
Aggressive Call writing at and above the level of 25,500 indicates that traders expect resistance to persist for Nifty 50 unless the Budget delivers a strong positive surprise.
Most experts expect the Nifty 50 to trade in the 24,900–25,500 range, as a breakout on either side could provide a firm directional cue.
The market is expected to remain range-bound with an elevated VIX. Below are some short-term trading ideas to consider.
Momentum still needs to strengthen, though it has gradually been improving over recent sessions. Strong momentum is possible only after the index convincingly surpasses the 25,650–25,700 zone.
Hedging limits downside risk and provides liquidity during market fall.
According to the weekly options data, strong resistance for the Nifty 50 is placed at 26,000 in the short term, with an immediate hurdle at 25,500, while support is placed at 25,000.
The improving momentum indicators appear to be gradually aligning with the recent rally. Overall, the indices are expected to remain range-bound with a positive bias as they approach the Union Budget scheduled for February 1.
The market may see range-bound trading ahead of the Union Budget scheduled on February 1. Below are some short-term trading ideas to consider.