Indian Markets Defy STT Concerns with Strong Post-Budget Rally
The Indian equity markets demonstrated remarkable resilience on Monday, February 2, brushing aside concerns surrounding the increase in Securities Transaction Tax (STT) on Futures & Options (F&O) transactions. This announcement was made by Finance Minister Nirmala Sitharaman during her Budget 2026 speech. Despite initial apprehensions, both benchmark indices registered substantial gains, reflecting underlying market strength and investor confidence.
Market Performance and Technical Outlook
The benchmark Sensex soared by an impressive 944 points, translating to a gain of 1.17%. Simultaneously, the Nifty 50 index closed at 25,088.40, marking an increase of 263 points or 1.06%. With the Union Budget now behind us, market attention has shifted back to fundamental factors. However, analysts caution that domestic markets might experience some volatility in the near term. This potential turbulence is attributed to mixed third-quarter earnings reports and evolving geopolitical situations across the globe.
From a technical perspective, market experts maintain a cautious stance. They believe that as long as the Nifty 50 remains below its 200-day Simple Moving Average (SMA), which is positioned near the 25,250 mark, overall market sentiment could stay subdued. In the event of a downward movement, the index is expected to find crucial support levels at 25,000 and 24,900. Given this backdrop of cautious optimism, financial advisors suggest that short-term investors should concentrate on stocks displaying favorable technical indicators and strong chart patterns.
Expert Stock Recommendations for Short-Term Gains
Leading market analysts have identified specific stocks that present promising opportunities for investors with a 1-2 week horizon. Vishnu Kant Upadhyay, Assistant Vice President of Research Advisory at Master Capital Services, and Aakash Shah, Research Analyst at Choice Equity Broking, have recommended six stocks based on detailed technical analysis.
Vishnu Kant Upadhyay's Top Picks
Mishra Dhatu Nigam (MIDHANI)
- Buy Range: Around ₹356
- Target Prices: ₹395 and ₹405
- Stop Loss: ₹324
Upadhyay observes that MIDHANI shares are exhibiting early indications of a bullish reversal. The stock has rebounded sharply from recent lows with significant price expansion. It has successfully reclaimed its short-term Exponential Moving Averages (EMAs) and is attempting to move above the medium-term moving average cluster, signaling improving momentum. The price is currently trading comfortably above the falling trendline resistance, demonstrating technical strength. This breakout attempt is further supported by rising trading volumes, suggesting renewed buying interest from market participants.
Jindal Saw
- Buy Range: Around ₹177
- Target Prices: ₹196 and ₹200
- Stop Loss: ₹162
According to Upadhyay, Jindal Saw shares have experienced a decisive breakout, confirmed by a sharp surge in trading volumes. This volume spike indicates strong institutional participation. Following the breakout, the stock has undergone a healthy retracement, which appears to be profit booking rather than a trend reversal. This pullback is constructive, helping the stock consolidate above the breakout zone. Importantly, the stock has regained its short-term moving averages. As long as it sustains above these levels, the broader setup remains bullish, with potential for trend continuation and a fresh upward leg in the near term.
Alivus Life Sciences
- Buy Range: Around ₹922
- Target Prices: ₹990 and ₹1,020
- Stop Loss: ₹865
Upadhyay highlights that Alivus Life Sciences shares are displaying a constructive bullish setup. The stock has rebounded sharply from recent lows and reclaimed its short-term EMAs. The price action indicates a formation of higher lows, signaling improving momentum after a prolonged corrective phase. Rising volumes during the recovery suggest fresh accumulation at lower price levels. The stock is currently sustaining above its immediate support zone of ₹900-920 and continues to build above the short-term moving averages. This technical structure supports the possibility of further upside extension in the near future.
Aakash Shah's Selected Stocks
NMDC
- Buy Range: Around ₹81.44
- Target Price: ₹87.68
- Stop Loss: ₹78.42
Shah notes that NMDC shares are showing signs of reversal from key support levels. The Relative Strength Index (RSI) at 52.05 is trending upward, indicating healthy momentum. On the weekly timeframe, the stock continues to form a higher high–higher low structure and has rebounded from lower levels, suggesting a continuation of the uptrend. On the daily chart, a bullish hammer pattern has formed. A breakout above ₹82, accompanied by rising volumes, would confirm strong buying interest and validate the upward move. This setup indicates a potential short-term upside target of ₹87.68. The stock is trading above its 20-day, 50-day, and 200-day EMAs, reflecting positive market sentiment.
Samvardhana Motherson International
- Buy Range: Around ₹114.09
- Target Price: ₹124
- Stop Loss: ₹109.70
Shah emphasizes that Samvardhana Motherson shares have rebounded from a key support zone near its 200-day EMA. The stock is exhibiting healthy consolidation, indicating underlying strength and accumulation. It is trading above its 20-day, 50-day, 100-day, and 200-day EMAs, confirming a strong multi-timeframe trend. The RSI at 50.03 is turning upward, reflecting improving momentum. A decisive close above ₹116.70, supported by strong volumes, could trigger further upside toward ₹124 in the medium to long term. Traders may consider a buy-on-dips approach.
Welspun Corp
- Buy Range: Around ₹755
- Target Price: ₹850
- Stop Loss: ₹710
Shah points out that Welspun Corp shares are showing healthy consolidation near last month’s low, suggesting base formation and potential trend stabilisation. On the daily timeframe, the RSI stands at 47.35 and is trending higher while displaying bullish divergence. This indicates improving momentum and a possible reversal. The stock is approaching its 20-day EMA, and a sustained move above it could open the path toward the 50-day and 200-day EMAs. A decisive close above the ₹775 resistance, backed by strong volumes, could propel the stock toward ₹850 in the medium to long term. A buy-on-dips strategy is recommended.
Disclaimer: This article is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms. Investors are strongly advised to consult with certified financial experts before making any investment decisions, as market conditions are dynamic and individual circumstances vary.
