Market update: Nifty and Bank Nifty analysis

View Full Image
On 3 Feruary, the market closed in the red amid weak global cues and concerns over low capex allocation in the Union Budget 2025-26, triggering a sharp sell-off in capex-related stocks. The Nifty declined 121.10 points to close at 23,361 (-0.52%), while the Bank Nifty dropped 296 points to settle at 49,210 (-0.60%).
Major sell-offs were observed in PSE (-3.2%), ENERGY (-3%), and OIL & GAS (-2.22%). All sectors closed in the red, except IT INDEX (+0.68%), HEALTH CARE (+0.19%), AUTO (+0.09%), SERVICE SECTOR (+0.02%).
The top performers among the Nifty 50 stocks were BAJAJ FINANCE (+5.3%), MAHINDRA & MAHINDRA(+3.1%), WIPRO (+2.9%).
On the other hand, the top losers in the market were L&T (-4.6%), ONGC (-3.3%), and TATA CONSUMER (-3.1%).
Indian stock market’s outlook:
On the daily chart, the Nifty closed near the 20 EMA, with selling pressure emerging from the 23,600-23,650 levels. The trend remains weak as long as the Nifty stays below 23,660.
On the hourly chart, the market is trading below AVWAP (23,739), which was calculated from the 5 December high and may act as resistance. Meanwhile, the AVWAP from the 27 January low is at 23,307, which can act as support.
In short, the Nifty is likely to trade within the 23,300-23,700 range until a breakout occurs on either side.

View Full Image
Three stocks to buy, recommended by Ankush Bajaj:
Buy CHOLAFIN at ₹1,337 | Target ₹1,450-1,480 | Stop loss ₹1,273
On the hourly chart, the stock has broken out of a rectangle pattern, signalling a bullish move. It is also trading above the 60 level, indicating strong momentum post-breakout. This suggests potential continuation of the upward trend if key support levels hold.
Buy SBICARD at ₹825 | Target ₹870-890 | Stop loss ₹796
On the hourly chart, the stock is showing bullish momentum, with ADX above 30, indicating strong trend strength. It has successfully closed above the recent supply zone of 800-806, which can now act as a demand zone. Taking a bullish trade with a small stop-loss seems like a good strategy.
Buy WIPRO at ₹313.60 | Target ₹325-332 | Stop loss ₹306
Wipro was a strong candidate yesterday. On the lower timeframe, it broke the 310 level, confirming a triangle breakout. With ADX near 25, the stock indicates strong upside momentum, suggesting a continuation of the bullish trend.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
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 guarantee 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.