However, mid and small-caps outperformed. The BSE 150 MidCap Index 0.61%, while the BSE 250 SmallCap Index rose 0.54%.

The overall capitalisation of BSE-listed firms rose to nearly ₹469 trillion from ₹467 trillion in the previous session, making investors richer by nearly ₹2 trillion in a single session.

Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)

SAIL: Buy above ₹158, stop ₹153 target ₹171 (Multiday)

Bank of India: Buy above ₹161, stop ₹155 target ₹172 (Multiday)

ONGC: Buy above ₹267, stop ₹259 target ₹285(Multiday)

Stock market performance | 4 February

Indian equity markets witnessed a volatile trading session on 4 February, but managed to end with marginal gains. The Sensex closed higher by 78.56 points at 83,817.69, while the Nifty advanced 48.45 points or 0.19% to settle at 25,776. Market breadth remained positive, with 2,626 shares advancing against 1,413 declines and 143 remaining unchanged.

On the Nifty, ONGC, Eternal, Trent, Adani Ports, and NTPC emerged as the top gainers, whereas IT heavyweights including Infosys, TCS, Tech Mahindra, HCL Technologies, and Wipro dragged the index lower.

Broader markets outperformed the benchmarks, with the Nifty Midcap index rising 0.6% and the Smallcap index surging 1.2%, reflecting strong investor interest beyond large caps. Sectoral performance was mixed, as the IT index plunged 6% amid concerns over AI-led disruptions, while auto, energy, consumer durables, PSU, realty, metals, oil & gas, and power sectors posted healthy gains of 1-2%.

Outlook for trading

Current market trends remain limited making it challenging for the trends to persist. At the moment the attempt to move higher remains challenged despite some revival seen in the trends. While the market tries its best to show some rebound the upward traction seems a bit confused as foreign portfolio investors (FPIs), who have been betting against Indian markets since October 2024, were forced to cover nearly two-fifths of their bearish derivatives positions on Tuesday after the announcement of an India-US trade deal.

From the charts below we can see that the play of resistance continues to remain a very important force that will contain the up-move. As resitance and support zones have been defined for the month of February. The gap on the charts have been marked as (label 2) that would create some volatility as the higher levels remain pressured. Looking at label 1 where the intraday charts ADX is witnessing some price move in either direction seen risng with the rise in DI lines. With lot of shorts in the system in the wake of the recent decline the possibility of range bound action cannot be ruled out between 24400 and 26400 leading us to play a wide range.

A look at the Option data reveals that the Max Pain point remains at 25750 indicating that the market is still buying some time ahead of the event of RBI policy. With mixed reactions on the floor the traders are caught in a bind. At higher levels 26000 will be the inflexion point where the trends are seen hesitating.

As PCR remains at 0.96 there is still some debate on how the market will sway. Bank Nifty however will still be a preferred index as the trends in this index seems to be much stronger. As index debates, stock specific action continues.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

SAIL (current market price ₹266.95) – Buy above ₹158, stop ₹153 target ₹171 (Multiday)

• Why it’s recommended: Steel Authority of India Ltd (SAIL) is India’s largest government-owned steel manufacturing corporation operating a massive network of production facilities. Strong thrust above the cloud region we can now look at some bullish momentum to develop that can help an upmove in the next few weeks. As some fresh buying is emerging once again as momentum begins to pick pace, consider going long.
• Key metrics:
  • P/E Ratio: 23.77
  • 52-week high: ₹160
  • Volume: 118.37K
• Technical analysis: Support at ₹725, resistance at ₹1100.
• Risk factors: Volatility in steel prices and raw material costs, increasing debt due to large capital expenditures, and margin pressure.
• Buy: Above ₹158.
• Stop loss: ₹153.
• Target price: ₹171. (2 Months)

Bank of India (current market price ₹160.93) – Buy above ₹161, stop ₹155 target ₹172 (Multiday)

• Why it’s recommended: Bank of India is a major Indian public sector bankestablished in 1906 and nationalized in 1969, offering a wide range of retail, wholesale, and treasury banking services. With the Budget and the strong Q3 earnings the prices have been able to absorb the profit booking and demonstrating some has ensured that the recent highs are not given up and recent dips that are emerging to stage a sharp revival leading to a strong upward traction. The long body candle seen on Wednesday despite large scale volatility highlights that we can look for a push to higher levels. Go long now.
• Key metrics:
  • P/E: 7.23,
  • 52-week high: ₹169.90,
  • Volume: 8.27M.
• Technical analysis: Support at ₹153, resistance at ₹178.
• Risk factors: Credit risk (NPAs), regulatory changes, cybersecurity threats, increasing competition, and economic volatility, with recent analysis highlighting ongoing asset quality concerns.
• Buy: Above ₹161
• Stop loss: ₹155
• Target price: ₹172 (2 Months)

ONGC (current market price ₹266.95) – Buy above ₹267, stop ₹257 target ₹281 (Multiday)

• Why it’s recommended: Oil and Natural Gas Corp. (ONGC) Ltd is India’s largest national oil company, responsible for over 70% of India’s domestic oil and gas production. A rounding pattern on daily charts has fuelled some recovery in the last few months. The strong upward charge seen in the last few days is indication some volume lead traction that can help the prices move higher. With support from TS & KS we can see the momentum sustain. Consider going long.
• Key metrics:
  • P/E Ratio: 55.77
  • 52-week high: ₹559.40
  • Volume: 15.75M
• Technical analysis: Support at ₹450, resistance at ₹650.
• Risk factors: Regulatory changes, high capital expenditure needs, geological uncertainty in exploration.
• Buy: Above ₹267.
• Stop loss: ₹257.
• Target price: ₹281. (2 Months)

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.