Stocks to Buy for Short-Term: Jay Thakkar of ICICI Securities Recommends These Three Shares in the F&O Segment
Stock Market News Update
Stocks to Buy for Short-Term: The Indian stock market witnessed a flat-to-negative session on Wednesday, with Nifty 50 hovering around 23,734.55, while the Sensex dipped 0.23% to 78,409.90. Energy stocks, led by ONGC and oil marketing companies, provided some support to the indices due to improved earnings forecasts. However, consumer shares experienced a downturn, limiting gains.
Despite Wednesday’s slow movement, both Nifty 50 and Sensex recorded impressive gains of 1.6% and 1.8% on Tuesday, their strongest in a month, pushing them into positive territory for 2025.
According to an ICICI Direct Research report, Nifty 50 has shown resilience against FII selling pressure, rebounding nearly 3% from recent lows to stay just below the 23,500 mark. With the Union Budget and monthly derivatives expiry behind, volatility remained low, with broader markets showing mixed trends.
Looking ahead, analysts suggest that as long as Nifty 50 stays above 23,600, the market has the potential to move upwards towards 24,200 levels in the short term.
Market Outlook by Jay Thakkar – ICICI Securities
Nifty 50 Analysis
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, provides a bullish outlook on Nifty 50. The index surpassed its previous swing high of 23,632, signaling a continuation of the uptrend.
Key indicators supporting this trend include:
✔ FIIs’ Net Index Long Positions: Currently at 16.76%, which remains oversold, suggesting further short-covering potential.
✔ Put-Call Ratio (PCR): Has jumped to 1.13, indicating bullish sentiment.
✔ Options Data: Highest call OI is at 24,000, but unwinding is observed, allowing room for upside. The put base at 23,500 reinforces it as a strong support level.
✔ India VIX: Fell from 19 to 14, indicating a less volatile and more stable market.
✔ Nifty’s Short-Term Target: If Nifty 50 remains above 23,500, the short-term target is 24,000.
Top 3 Short-Term Stock Picks by Jay Thakkar
Jay Thakkar has identified three stocks in the F&O segment that are primed for potential short-term gains based on derivatives data, technical indicators, and market trends.
1. NTPC Futures
Current Market Price (CMP): ₹323
✔ Target 1: ₹338
✔ Target 2: ₹345
✔ Stop Loss: ₹310
Why Buy?
✅ Outperformance vs. Nifty 50: NTPC did not form a new low despite the market’s decline.
✅ Short Covering: Open Interest (OI) dropped by 20%, indicating room for upside.
✅ PCR at 0.40: Suggests oversold conditions, meaning reversal potential.
✅ Strong Support at ₹300: This is the recent swing low and a key put addition zone.
2. Reliance Industries Futures
CMP: ₹1,290
✔ Target 1: ₹1,340
✔ Target 2: ₹1,380
✔ Stop Loss: ₹1,240
Why Buy?
✅ OI Reduction: Reliance witnessed a 25% drop in OI, indicating short covering.
✅ Oversold Reversal: The stock corrected 25% from ₹1,600 to ₹1,200, forming a base.
✅ PCR Improvement: A shift in derivatives data suggests a strong upside move.
✅ Key Resistance at ₹1,300: Once crossed, momentum will pick up.
3. GNFC Futures (Gujarat Narmada Valley Fertilizers & Chemicals)
CMP: ₹583.70
✔ Target 1: ₹610
✔ Target 2: ₹625
✔ Stop Loss: ₹561
Why Buy?
✅ Consolidation at Lower Levels: The stock is at the lower end of the range, making risk-reward favorable.
✅ PCR Indicates Bullish Momentum: Increasing put additions at lower levels suggest upside potential.
✅ Max Pain & Modified Max Pain Levels Above ₹560: This supports stability and potential rebound.
Key Financial Ratios of Recommended Stocks
| Stock | P/E Ratio | P/B Ratio | ROE (%) | Dividend Yield (%) | 52-Week High | 52-Week Low |
|---|---|---|---|---|---|---|
| NTPC | 14.2 | 1.8 | 14.5 | 3.2 | ₹372 | ₹211 |
| Reliance | 22.5 | 2.4 | 12.3 | 0.5 | ₹2,850 | ₹2,090 |
| GNFC | 9.8 | 1.2 | 15.8 | 1.8 | ₹764 | ₹482 |
Conclusion
Jay Thakkar’s picks, NTPC, Reliance, and GNFC, are backed by strong technical indicators, derivatives data, and support levels. These stocks offer a good risk-reward ratio for short-term traders in the F&O segment.
With Nifty 50 maintaining its momentum and staying above 23,600, the overall market outlook remains bullish in the near term. Traders should watch these key levels and take advantage of the short-term opportunities.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.