First thing I think of is to buy a bag of the wooden balls with the hole in the middle and paint them orange...then draw the little black lines on them like a basketball. Run a string of curly ribbon or embroidery floss through the hole, and secure it at the bottom by tying a bead so the ball won't fall off. Use the top of the string/floss to put the safety pin through, and call it a basketball. :)
Second thought is to buy some of the black and white checker ribbon or fabric and make it into a flag by securing it with some type of kabob stick or toothpick without the sharp edge.
I'm a native Hoosier too. Hope it helps! :)