Stocks to buy on Budget Day: 3 short-term trading ideas for 1 February 2023

Indian market is expected to remain volatile amid Budget 2023 and the outcome of the US Federal Reserve policy statement.

The S&P BSE Sensex and Nifty50 closed flat with a positive bias on Tuesday.

India VIX moved up by 2.25% from 17.32 to 17.71 levels. Volatility spiked above 19 levels during the day and has been rising from the last four sessions, giving discomfort to the overall market sentiment.

On the options front, the weekly maximum Call OI is seen at 18000 and then towards 18200 strikes while the weekly Maximum Put OI is placed at 17000 and then towards 17500 strikes.

“Options data suggests a broader trading range in between 17200 to 18200 zones due to upcoming event while an immediate trading range in between 17400 to 17800 zones,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.

“Nifty formed a Bullish candle with longer lower shadow on the daily frame which indicates support-based buying at lower levels but the trend is taking pressure at higher zones,” he said.

“Now, till Nifty holds below 17777 zones, a bounce could be sold for the downside move towards 17500 then 17350 zones whereas hurdles are placed at 17777 and 17850 zones,” recommends Taparia.

We have collated stocks from various experts for traders who have a short-term trading horizon:

Expert: Gaurav Ratnaparkhi, Head Technical Research at Sharekhan by BNP Paribas

Indian Bank: Buy| Target Rs 325| Stop Loss Rs 259.50
The stock broke out from the 280–300 range on the upside. The breakout was supported by above-average volume which is a positive sign.

Tata Elxsi: Buy| Target Rs 7200| Stop Loss Rs 6420
The stock is consolidating around the support of the 40-Day exponential moving average.

Tata Motors: Buy| Target Rs 495| Stop Loss Rs 435
The stock breakout from an Inside bar pattern indicates the resumption of the uptrend after a brief consolidation.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Economic Times)