Buy or sell stocks: Indian equities delivered a stunning turnaround on Tuesday, February 3, logging one of the sharpest single-day advances in recent years as investors reacted to the formal announcement of the long-awaited India–U.S. trade agreement. The development dramatically changed the market mood that had remained cautious in recent sessions, triggering aggressive buying across sectors and market caps.
The benchmark BSE Sensex vaulted more than 4,200 points, gaining 5.1% to hit an intraday high of 85,871.73. The Nifty 50 surged 1,252 points, or 5%, to 26,341.2 during the session, reflecting broad-based participation.
The rally followed confirmation from U.S. President Donald Trump that reciprocal tariffs on Indian goods would be cut to 18% from 50%. In exchange, India agreed to significantly reduce tariff as well as non-tariff barriers on American goods, effectively bringing them down to zero.
This surge came just days after markets had reacted negatively to the Union Budget announced on February 1. Indices had fallen nearly 2% in the previous session after the Budget proposed a sharp hike in Securities Transaction Tax (STT) on derivatives. Futures STT was raised to 0.05% from 0.02%, while options STT increased to 0.15% from 0.10/0.125%.
Market experts believe the trade breakthrough has now decisively altered that narrative.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, “The combination of US-India trade deal, the EU-India trade deal and the growth-oriented Budget will boost the market sentiments and the animal spirits in the economy. The stock market, anticipating and discounting these developments will boom.”
Economists also pointed to the larger geopolitical implications. Sujan Hajra, Chief Economist & Executive Director at Anand Rathi Group, noted that Indian equities had been carrying a geopolitical discount due to tariff-related tensions and diplomatic friction, which is now beginning to fade.
He said, “With the India–US treaty now in place, that overhang is beginning to lift. The key shift is not incremental tariff relief, but the restoration of geopolitical and trade stability. As risk premia normalise, India once again looks investable to global capital — a high-growth, politically aligned, strategically important economy with deep domestic demand and improving external linkages to both the US and Europe.”
Technical stocks to buy
Amid the sharp rebound, Sachin Gupta, Vice President – Research at Choice Equity Broking, identified three stocks that continue to display resilient technical structures despite recent broader weakness. According to him, these counters are holding firm near strong support zones, showing improving momentum indicators, and offering favourable risk-reward setups for traders.
Buy VBL in Cash around 475-478 SL @ 455 TGT @ 500/515
VBL is showing signs of a positive turnaround after rebounding strongly from its immediate support zone near 460 and sustaining above the 100-day DMA, highlighting improving price stability and buyer confidence. The stock’s ability to hold above this key moving average indicates a shift away from the recent corrective phase.
Momentum indicators further support the bullish outlook, with the Daily RSI pulling up from lower levels, signaling renewed buying interest and the presence of bulls. Additionally, the price has moved decisively above the Ichimoku Cloud, suggesting strengthening bullish bias and improving trend structure in the counter.
On the downside, the 460 zone is expected to act as a crucial support area. Considering the improving technical setup, traders may look to initiate long positions around 468–470, with a stop loss placed below 455 and upside targets positioned at 495 and 510, while adhering to disciplined risk management practices.
Buy PFC in Cash around 378-380 SL @ 367 TGT @ 400/408
PFC is showing a positive technical setup after registering a consolidation breakout and sustaining above the 100-day EMA, indicating improving price strength and a potential shift toward a bullish phase. The stock’s ability to trade above this key moving average highlights growing buyer confidence and stability in the ongoing trend.
Adding to the positive outlook, strong volume participation has been observed over the last few trading sessions, confirming accumulation at higher levels. A trendline breakout on the daily chart further strengthens the bullish bias, suggesting that the stock may be entering a fresh upward leg.
On the downside, the 370 zone is acting as immediate support area. Considering the favorable technical structure, traders may look to initiate long positions around 378–380, with a stop loss placed below 366 and an upside target near 400/408, while maintaining disciplined risk management practices.
DATAPATTERN is currently trading near the ₹2520 zone, reflecting steady price behavior after a corrective phase.
On the daily chart, the stock has recently managed to close above its key 21-day Exponential Moving Average (EMA). This breakout signals a shift in short-term momentum from neutral to bullish and strengthens the overall positive bias in the stock.
Traders may consider buying on dips in the range of ₹2470–2500, keeping a stop loss at ₹2298. On the upside, the stock has the potential to move towards ₹2700 and ₹2800 in the short to medium term, provided the broader market sentiment remains supportive.
After forming a base near the 3720 zone, the stock has witnessed a steady recovery move on the daily chart and is now comfortably sustaining above its 200-day DMA, indicating a revival in the broader trend. Holding above this long-term moving average reflects improving price stability and strengthening buyer confidence.
Momentum indicators are also turning supportive, with the RSI rebounding from oversold territory, signaling renewed buying interest and a potential shift in momentum. Additionally, the stock has taken support near the lower Bollinger Band and is now gradually moving toward the mid-band, suggesting a normalization of price action and scope for further upside.
Given the improving technical setup, traders may consider initiating long positions in the range of 3850–3870, with a strict stop loss placed below 3650. On the upside, the stock has the potential to move toward 4100 and 4250 levels in the short to medium term.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
