Amid positive global markets, foreign institutional investors (FIIs), sentiment, neutral domestic institutional investors (DIIs) and futures & options (F&O) cues, the short-term trend of the Indian stock markets will be positive on Tuesday, February 2, 2021.

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Benchmark domestic stocks on Monday, February 1, 2021, skyrocketed around five per cent welcoming Union Budget 2021-22. The BSE Sensex closed above 48,500-mark while the NSE Nifty settled near 14,300 level. The Sensex surged 2315 points, or five per cent, to 48,601. The NSE Nifty also climbed 647 points, or 4.7 per cent, to 14,281. Bank Nifty gained 2,524 points, or 8.26 per cent, to close higher at 33,089.05.

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The broader market at BSE also jumped but underperformed the Sensex. The BSE Mid-Cap index gained 3.03 per cent and the BSE Small-Cap index appreciated 2.03 per cent.

Zee Business’s Managing Editor Anil Singhvi’s Market Strategy for February 2:

POST BUDGET STRATEGY:

Why Markets liked the Budget:

  • No negative is a big positive.
  • No unnecessary tinkering in tax slabs.
  • Transparent accounting and reliable data.
  • Strong intent.
  • Priority on growth and clear Fiscal path.

Market Outlook post Budget:

  • Nifty to reach back 14,600-14,800 range. 13,750-14,000 is Strong support zone.
  • Sectors & Stocks to invest post Budget:
  • PSU Banks, Midcap Cement stocks, Pharma stocks, PSU stocks and ITC.

Day support zone on Nifty is 14,200-14,250. 

Day higher zone on Nifty is 14,350-14,425, above that 14,475-14,525 strong profit-booking zone.

Day support zone Bank Nifty 32,450-32,575

 Day higher zone on Bank Nifty is 33,450-33,500, above that 33,850-33,950 is profit-booking zone.

The small day range for trading on Nifty is 14,275-14,375, while the medium and bigger ranges are 14,250-14,425 and 14,200-14,475. respectively.

The small day range for trading on Bank Nifty is 32,850-33,450, while the medium and bigger ranges are 32,575-33,650 and 32,450-33,850, respectively.

FIIs Big increased Index long at 75% Vs 63%

PCR at 1.41 Vs 0.98

VIX down by 8% at 23.32

For Existing Long Positions:

Nifty intraday and closing stop loss are 14,200.

Bank Nifty intraday and closing stop loss are 32,450.

For Existing Short Positions:

Nifty intraday and closing stop loss are 14,375.

Bank Nifty intraday and closing stop loss are 33,300.

For New Positions:

Buy Nifty with a stop loss of 14,200 and target 14,375, 14,425, 14,475, 14,500, 14,525.

Sell Nifty in 14,500-14,575 range with a stop loss of 14,650 and target 14,475, 14,425.

 For New Positions:

Buy Bank Nifty with a stop loss of 32,800 and target 33,300, 33,450, 33,550, 33,650, 33,750, 33,850.

F&O Ban Update:

New In Ban: SAIL

Out Of Ban: NIL

 INDIGO PAINTS LISTING PREVIEW:

Expected to list around 2200-2400 range.

Keep stop loss at 2100 as of now and trail it higher post listing.