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 today: The main domestic indices, Nifty 50 and Sensex, slipped on Wednesday, influenced by a decline in information technology stocks amid concerns about US economic growth that overshadowed broader advances.

As of 12:15 IST, the Nifty 50 had decreased by 0.57% to 22,368.90, while the Sensex dropped by 0.53% to 73,709.58. Initially, both indices had risen by 0.3% during early trading. US President Donald Trump initially promised to double tariffs on Canadian steel and aluminum but quickly reversed his stance, prompting worries about the US economy and unsettling investors. Analysts noted that fears of a potential recession in the US have caused ripples of uncertainty across global markets.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that investors need to consider two key aspects of the short-term trend in the stock markets. On a global scale, markets are experiencing weakness and unease due to uncertainties surrounding tariff policies. This situation is likely to persist and may even deteriorate further as reciprocal tariffs are implemented starting in early April. In light of this, a sustained recovery in global markets seems unlikely, and additional declines are anticipated.

Nevertheless, despite this negative environment, the Indian equity market is demonstrating some strength. The fact that Nifty 50 managed to recover approximately 150 points from its lowest point and ended in the green, even after a significant drop in US markets yesterday, indicates the recent resilience and outperformance of the Indian market.

This trend is underpinned by fundamental factors, including leading indicators that suggest a recovery in growth and a reduction in inflation. The current economic fundamentals of India appear significantly stronger than they did about a month ago, and this may continue to bolster the market.

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

Nifty 50

Nifty 50 has bounced back from 21,900/22,000 support range after having fallen for 10 consecutive days. The bounce back has been on account of short covering which was mainly witnessed in those stocks wherein there was quite a lot of shorts built up.

The Bank Nifty although has underperformed in the recent time as well as Nifty IT has also underperformed since last week. So, apart from Nifty IT and Nifty Bank most of the other sectors and stocks have managed to bounce back quite well. The FII net long % is at 18%, so there is still much of room for short covering as it is still near its lower end of the range.

The IVs have stabilized at 13 to 14 levels providing the comfort for a short-term bounce, however, its trading near the lower end of the range of last 3 months, so a rise in IVs would indicate selling pressure going ahead, hence that needs to watched. The PCR is back above 1 at 1.08 which is mildly bullish and 22,200 is the near-term base of this weekly expiry, whereas, 22,700 to 22,900 range seems to be a clear resistance as from 22,700 to 23,000 there is higher call base. So, the Index is likely to trade with a sideways to positive bias with a broader range of 22,200 to 22,800.

Stocks To Buy in the near-term – Jay Thakkar

Jay Thakkar of ICICI Securities recommends buying REC Futures, Tata Motors Futures, and Kotak Mahindra Bank Futures.

Buy REC Futures in the range of ₹403 to ₹405 with a stop loss of ₹393 for the targets of ₹418 and ₹426

REC Futures has witnessed huge short built up since the prices started to correct since December 2024. The OI has again reached to its 2021 highs indicating that there is high chance of short covering from the current levels. The stock has witnessed an improvement in PCR as 420 call has seen unwinding whereas 350 and 390 puts have seen additions indicating a higher chance of an up move in the short term. Currently, the stock is trading above its max pain level of 400 as well as its 20-day VWAP which is 393, so the risk to reward is quite favourable for the longs from hereon.

Buy Tata Motors Futures in the range of ₹673-668 with a stop loss of ₹649 for the targets of ₹695 and ₹710

Tata Motors had witnessed huge short built up earlier, however, in its last fall there has been significant reduction in the short covering by almost 32% and the prices have still not recovered, so there is a higher chance of a bounce back in the prices. In the last trading session, there was significant call unwinding, hence the PCR has also improved to 0.73 levels, hence the upside is more likely. The stock is also trading well above its 650 levels which is its max pain as well as it has now beyond its 20-day VWAP, hence the risk to reward is more favorable for the bulls in the near term.

Buy Kotak Mahindra Bank Futures in the range of ₹1,990 to ₹1,980 with a stop loss of ₹1,935 for the targets of ₹2,050 and ₹2,090

Kotak Bank has seen up move based on short covering and recently there has been long built up as well. The stock is now coming out of its medium-term range and it is trading well above its 20-day VWAP as well as its max pain levels which is quite supportive for the bulls in the near term. On the options front there has been significant call unwinding 1900 strike to 196 strike as well as aggressive put additions until 2,000 strike, this indicates that there is a higher probability of an upside.

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 11/03/2025 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.