Stocks to buy or sell for short-term: Jay Thakkar of ICICI Sec suggests these three shares in F&O segment | Stock Market News

Stock Market News: The primary stock indices in India, Nifty 50 and Sensex, rose on Wednesday, driven by gains in major financial stocks, which offset the decline in pharmaceutical shares due to US President Donald Trump’s tariff warnings. Initially, Indian stock markets opened lower on Wednesday, despite varying global signals and concerns regarding the tariffs announced by President Trump.

As of 14:08 IST, the Sensex had was flat settling at 75,976.15, while the Nifty 50 was also flat trading at 22,939.40.

On Tuesday, Trump announced he plans to implement auto tariffs of approximately 25% along with similar duties on imports of semiconductors and pharmaceuticals.

Following the most recent tariff warnings, the Nifty pharma index dropped by 0.9%, with 15 out of 20 companies experiencing declines. The United States represents nearly 31% of India’s overall pharmaceutical exports, which amounted to $8.73 billion in fiscal 2024, according to data from the Pharmaceuticals Export Promotion Council of India.

Analysts noted that Trump’s recent actions caused investors to shift away from export-focused stocks, particularly in the pharma and information technology sectors.

Market Outlook by Jay Thakkar, Vice President & Head of Derivatives and Quant Research, ICICI Securities

Nifty 50 has been taking support at 22,800 levels on a closing basis and this has led to a formation of put base at lower levels near 22,600/22,700 levels, hence the downside for this weekly expiry looks les rather it increases the probability of a bounce back at least until 23,300 which has witnessed aggressive call writing and above those 23,500 levels.

In this recent fall from 23,800 levels, the broader markets have underperformed and the fall has been sharp in Midcaps and Smallcaps, however, it now looks oversold as the MidcpNifty indicates that there can some bounce back from the current levels as the IVs have reached to the upper end of the range from which generally we see it cooling off which eventually helps the Index to bounce back.

Also, Nifty 50 has not closed in the negative territory for the five consecutive months historically and after 4 consecutive negative monthly close it has delivered 3% to 10% jump at Index levels and since February is the 5th month, so the probability of it closing in the positive territory is quite high. So, the Index view is positive in the short term until 22,800 levels are held on a closing basis and 23,600 levels are held on an intraday basis, the targets are 23,300 and 23,500 levels on a conservative basis.

Stocks To Buy in the near-term – Jay Thakkar

Buy NTPC Futures at CMP: ₹314.50; Stop Loss: ₹306; Targets: ₹325 and ₹335

NTPC had witnessed huge shorts in the previous fall and thereafter the futures OI has decreased by more than 30% but the prices were yet to bounce back. Now, the stock has provided a breakout from the range as well as it has moved beyond its max pain level of 310 which Is a positive sign going forward. The highest call OI is at 315 and its also trading at its 30 day VWAP level, so above 315 the upward momentum will increase leading to further short covering in the stock

Buy Berger Paints Futures at CMP: ₹490; Stop Loss: ₹476; Targets: ₹505 and ₹515

The stock has witnessed increase in OI by more than 13% in the last trading session with an increase in Price which is a case of long built up. It has formed a good put base in the range of 480 to 450 and it has been consolidating with a range for sometime indicating that the base is mostly formed and a breakout on the upside is likely from the derivatives point of view. The stock has been trading well above its 30-day VWAP and it’s been holding the same for this series, hence the overall outlook for this series is positive.

Buy SAIL Futures at ₹106.50; Stop Loss: ₹102; Targets: ₹112 and ₹116

SAIL has moved above its 30 day VWAP levels which is indicating a recovery in the stock. The futures OI has reached to its 1 year low after the stock has witnessed huge long unwinding. Overall, the Nifty Metal Index is now outperforming the Nifty 50 in the recent fall, hence the stock is likely to bounce back from the current levels.The stock has also witnessed put base forming from 105 to 100 levels and on the upside there is highest call OI at 115 which when taken off will lead to further upward momentum. It has also moved above its max pain level of 105 making a good risk:reward for longs from current levels.

Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 18/02/2025 or have no other financial interest and do not have any material conflict of interest.

The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.