The Indian stock market witnessed a sharp fall in intraday trade on Sunday, after the finance minister presented her ninth consecutive budget. The Sensex closed 1,546.84 points lower at 80,722.94, while the Nifty shed 495.20 points to settle at 24,825.45, reflecting a decline of nearly 2%. Market breadth was negative, with 2,299 shares declining against 1,673 advancing and 155 remaining unchanged.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
MTARTECH (Cmp ₹3086.20)
- Why it’s recommended: MTAR Technologies Ltd is a leading Indian precision engineering company that manufactures mission-critical components for the space, nuclear, defence, and clean energy sectors. As of 1 February 2026, the company's stock reached a new all-time high of ₹3,148.90 following record-breaking Q3 financial results. The upthrust seen here could result in some continued upward drive. The revival has surpassed the cloud region and a strong upside has emerged in the last trading session.
- Key metrics:
o P/E Ratio: 141.61
o 52-week high: ₹3078
o Volume: 2.15M
- Technical analysis: Support at ₹350, resistance at ₹450.
- Risk factors: High dependency on major clients, potential revenue impact from budget changes.
- Buy: above ₹3090.
- Stop loss: ₹3040.
- Target price: ₹3215. (2 Months)
VTL (Cmp ₹452.20)
- Why it’s recommended: Vardhman Textiles Limited is one of India's largest vertically integrated textile manufacturers, producing a diverse range of products including yarn, fabric, sewing thread, and garments. A robust Q3 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 Sunday despite large scale volatility highlights that we can look for a push to higher levels. Go long now.
- Key metrics:
o P/E: 16.11,
o 52-week high: ₹4170,
o Volume: 1.59M.
- Technical analysis: Support at ₹400, resistance at ₹540.
- Risk factors: Raw material price volatility, foreign exchange fluctuations, inherent industry competition and cyclicality.
- Buy: above ₹454
- Stop loss: ₹438
- Target price: ₹525 (2 Months)
DELHIVERY (Cmp ₹436.80)
- Why it’s recommended: Delhivery Ltd is India's largest fully integrated logistics and supply chain services provider, headquartered in Gurugram, Haryana. After a steep selloff the stock is seen reviving. The intraday charts reveal that the trends ahead could shape up with new projects emerging. With steady support from ADX and DMI now fuelling some upside the Budget could provide some fuel. The volume surge seen is now hinting at some potential upward traction. Go long.
- Key metrics:
o P/E Ratio: 136.94
o 52-week high: ₹490
o Volume: 9.8M
- Technical analysis: Support at ₹400, resistance at ₹525.
- Risk factors: Fragmented market, reliance on network infrastructure, challenges in controlling operating costs, and volatile financial performance.
- Buy : above ₹441.
- Stop loss: ₹425.
- Target price: ₹481.
Stock Market Today
On 1 February 2026, Indian equity markets witnessed sharp volatility as Budget Day trading ended on a weak note, with the Nifty slipping below the 24,900 mark. The Sensex closed 1,546.84 points lower at 80,722.94, while the Nifty shed 495.20 points to settle at 24,825.45, reflecting a decline of nearly 2%. Market breadth was negative, with 2,299 shares declining against 1,673 advancing and 155 remaining unchanged.
Heavyweights such as ONGC, SBI, Hindalco Industries, Adani Ports, and Bharat Electronics were among the biggest drags, while select IT and healthcare names like Wipro, TCS, Infosys, Sun Pharma, and Max Healthcare managed to post gains.
Broader markets also came under pressure, with the Nifty Midcap index falling 2.2% and the Smallcap index losing 2.8%. Sectorally, IT was the lone gainer, while metals, PSU banks, oil & gas, and capital goods witnessed steep declines, underscoring the cautious sentiment surrounding the Budget announcements.
Outlook for Trading
Moving to the charts, we note that the trends have been largely oriented towards trading rather than investing. Hence, from a trading perspective, we can note that on the Daily charts highlight that the rally into the cloud region has restricted the rise. The trends remain muted and are now getting tired, and this could prove to be a threatening blow to the sentiment. The uncertain closing seen in the Daily chart of Nifty in the September series does not bode well for the market.
The volatility was anticipated but the extent took everyone by surprise and the fallout seen here has clearly established that the market participants are disappointed. The trend that is emerging clearly suggests that the decline seen on Sunday is now encountering the support zone. The entire month of January has been spent in a descending mode, preparing the market participants for a volatile Budget day.
Hence, one should track the trends that are in progress as a revival will now also depend on the FII and the upcoming RBI policy that can pave way for some bias restoration. AS far as levels are concerned Nifty needs to continue their way above 25100 (Nifty Spot) to retain the bullish bias. Momentums on hourly charts are indicating that the prices remain pressured and we may witness a resumption of selling pressure once 25000 is given away. With the gradual and hesitant decline, a rise is emerging from lower levels, and we can expect the rise to remain hesitant.
For undertaking shorts, we need to see Nifty move below 24500 for a further drop towards 24000 as per the Open Interest data a sharp fall is expected once key support levels break. With the Nifty closing near the Max Pain at 25000 we should look to approach this week on a cautious note.
If we witness a 30-minute range break on Thursday, we can consider trading on either side as the trends still remain tentative, where we expect some resistance to kick in. As the ranging market is in play, we need to be quick in profit taking as the trend does not have sufficient steam to move strongly in either direction.
The readings from the Option Data suggest that PCR has steadied at 0.89, highlighting that the trends are receiving support at lower levels, an important stage with some steady Call writing at 25000 levels continues to prove to be a fuel that can resist recovery to contain the buying interest for a rise. Some interesting trends are developing right now.
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.