Stock market recap: The Indian stock market suffered heavy losses in intraday trade on Thursday, 5 February, as investors booked profits across segments amid weak global cues. The Sensex hit an intraday low of 83,151.62, while the Nifty 50 fell below 25,650.
At the end of day's trade, the Sensex ended with a loss of 504 points, or 0.60%, at 83313.93, while the Nifty 50 closed at 25,642.80, down 133 points, or 0.52%.
The BSE 150 MidCap Index dropped by 0.43%, while the BSE 250 SmallCap Index declined by 0.81%
Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Friday, 6 February:
Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)
Jindal Steel: Buy above ₹1180, stop ₹1150 target ₹1265 (Multiday)
Indian Bank: Buy above ₹880, stop ₹860 target ₹975 (Multiday)
DMART: Buy above ₹3940, stop ₹3870 target ₹4225 (Multiday)
Stock market performance | 5 February
Indian equity markets ended in the red on 5 February, with the Nifty slipping 136 points to close at 25,639, reflecting broad-based profit booking after recent gains. Metal stocks led the decline, with the sectoral index falling nearly 2%, reversing the 6% rally seen over the past three sessions.
The weakness in metals was largely attributed to a stronger US dollar, which made global commodities more expensive for non-dollar holders, thereby pressuring prices. This triggered selling in domestic metal counters, dragging the index lower.
Pharma stocks also joined the decline, adding to the negative sentiment. Meanwhile, IT stocks showed resilience, edging higher after a steep 6 percent fall in the previous session. The rebound was modest, supported by bargain hunting, though concerns linger over AI-led disruption in the sector following Anthropic’s automation tool launch.
PSU banks also managed to stay in the green, offering some cushion to the otherwise weak market breadth.
Outlook for trading
From a technical perspective, the Nifty appears to be in a consolidation phase. A look at the charts below we can see that the play of resistance continues to hold its weight over the trends in the last few sessions as we near the very important force that will contain the up-move. As resistance and support zones have been defined for the month of February.
The gap on the charts around the 25500 to 25800 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.
The index has formed a near-term support around 25,500, coinciding with the 20-day moving average, while resistance is visible near 25,850. Momentum indicators such as RSI have cooled off from overbought territory, suggesting that the recent rally has lost steam and markets may remain range-bound in the short term.
In summary, 5 February marked a pause in the three-day rally, with profit booking dominating trade. Traders should watch the 25,500-support zone closely, as a breakdown could accelerate selling, while a rebound above 25,850 may revive bullish momentum.
A look at the Option data reveals that the Max Pain point has now slid to 25650 as market is still buying some time ahead of the event of RBI policy. With mixed reactions on the floor the traders are remain supressed as the trends are seen hesitating. As PCR has now slipped to 0.64 indicating a probable OI support has been reached ahead of the event.
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:
Jindal Steel (current market price ₹1178) - Buy above ₹1180, stop ₹1150 target ₹1265 (Multiday)
- Why it’s recommended: Jindal Steel Ltd is one of India's leading integrated steel producers with a significant global presence. 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. After some reaction we are noticing some fresh buying emerging once again as momentum begins to pick pace, consider going long.
- Key metrics:
- P/E Ratio: 36.21
- 52-week high: ₹1180.90
- Volume: 1.09M
- Technical analysis: Support at ₹1090, resistance at ₹1290.
- Risk factors: Raw material price volatility, high debt levels, regulatory and geopolitical changes, and operational disruptions.
- Buy : above ₹1180.
- Stop loss: ₹1150.
- Target price: ₹1265. (2 Months)
Indian Bank (current market price ₹879.50) - Buy above ₹880, stop ₹860 target ₹975 (Multiday)
- Why it’s recommended: Indian Bank, a major Indian public sector bank, is known for its extensive domestic and international presence, offering a full range of retail, corporate, and digital 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: 9.86,
- 52-week high: ₹923.15,
- Volume: 904.73K.
- Technical analysis: Support at ₹153, resistance at ₹178.
- Risk factors: Primarily driven by tightening liquidity, evolving regulatory requirements, and shifting household savings.
- Buy : above ₹880
- Stop loss: ₹860
- Target price: ₹975 (2 Months)
DMART (current market price ₹3934.10) - Buy above ₹3940, stop ₹3820 target ₹4225 (Multiday)
- Why it’s recommended: DMart (Avenue Supermarts Ltd) is a leading Indian value retail supermarket chain, offering a wide range of home and personal products, groceries, and apparel at competitive prices. A rounding pattern on daily charts has fuelled some recovery in the last few months. The sharp fall that is witnessed since last 6 months is looking to turnaround as FMCG sees some stabilisation post Budget. With tariff impact reducing we can now witness a rebound. Sytrong push above immediate value resistance around 3800 augurs well for the prices. Buy.
- Key metrics:
- P/E Ratio: 82.15
- 52-week high: ₹4916.40
- Volume: 867.14K
- Technical analysis: Support at ₹3750, resistance at ₹4250.
- Risk factors: Intense competition, pressure on operating margins, a very high stock valuation.
- Buy : above ₹3940.
- Stop loss: ₹3820.
- Target price: ₹4225. (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.