2 days ago
Jay Thakkar Recommends Three F&O Trades Amid Market Weakness
Jay Thakkar shared three short-term trading ideas for futures contracts.
He expects the overall Indian stock market to stay weak or move sideways.
He said the Nifty 50 has been making lower highs and lower lows.
He suggested buying Max Healthcare Institute because the healthcare sector has been performing well.
He suggested selling Vedanta because its price has weakened and more traders appear to be betting against it.
He also suggested selling IDFC First Bank after the stock reached 52-week highs without strong new long positions.
Each trade includes a price target and a level where traders should limit losses.
A Federal Reserve meeting, crude oil prices and global market signals could affect prices.
These are market views and not guarantees of what will happen.
Jay Thakkar expects the Nifty 50 to remain sideways to negative, with support at 23,000, 22,800 and 22,500.
He recommends buying Max Healthcare Institute futures at ₹1,020–1,040, targeting ₹1,080–1,120 with a stop loss below ₹970.
He recommends selling Vedanta futures at ₹254–260, targeting ₹240 and ₹230 with a stop loss above ₹266.
He advises selling IDFC First Bank futures near ₹86, targeting ₹82.50 and ₹81 with a stop loss above ₹88.
Thakkar cites weak broader-market momentum, options positioning, short buildup and potential Federal Reserve-related risks behind the recommendations.
- Who
- Jay Thakkar, Vice President and Head of Derivatives and Quant Research at ICICI Securities, issued the recommendations.
- What
- He recommended buying Max Healthcare Institute futures and selling Vedanta and IDFC First Bank futures.
- Where
- The recommendations concern Indian equity markets and futures contracts.
- When
- The outlook was provided for the short term ahead of Wednesday, 16 September, while the Federal Open Market Committee meeting was scheduled to conclude on 16 September.
- Why
- Thakkar cited weak Nifty 50 and Bank Nifty trends, options positioning, sector performance, short buildup, profit-booking risks and possible Federal Reserve-related pressure.
Bullish or Buy Case
Bearish or Sell Case
Max Healthcare Institute
Bullish or Buy Case
Thakkar recommends buying the futures because the Nifty Pharma and Healthcare sectors have outperformed, the stock rebounded after short covering, and holding above ₹1,000 could support a move toward ₹1,080–1,120.
Bearish or Sell Case
The trade remains exposed to broader-market weakness, and a move below the stated stop-loss level of ₹970 would undermine the bullish setup.
Vedanta
Bullish or Buy Case
A recovery could challenge the bearish view if the stock moves above resistance levels identified in the options data, including the ₹260–270 area.
Bearish or Sell Case
Thakkar recommends selling because Vedanta has seen short buildup, formed lower lows, and faces commodity concerns linked to a stronger Dollar Index and possible weaker demand.
IDFC First Bank
Bullish or Buy Case
The stock has outperformed the Nifty Bank and recently reached 52-week highs, suggesting continued strength if it holds its trading range.
Bearish or Sell Case
Thakkar expects possible profit booking because long-position additions have not meaningfully increased, leverage remains elevated, and call additions at ₹86 and ₹88 may create resistance.
Key facts
- Market close
- The Sensex fell 777.94 points, or 1.04%, to 74,003.82, while the Nifty 50 declined 279.50 points, or 1.19%, to 23,118.60.
- Nifty outlook
- Thakkar said the Nifty 50 could remain sideways to negative, with support at 23,000, 22,800 and 22,500.
- Max Healthcare trade
- Buy futures at ₹1,020–1,040; stop loss below ₹970; targets ₹1,080–1,120.
- Vedanta trade
- Sell futures at ₹254–260; stop loss above ₹266; targets ₹240 and ₹230.
- IDFC First Bank trade
- Sell futures near ₹86; stop loss above ₹88; targets ₹82.50 and ₹81.
- Bank Nifty level
- Thakkar said its short-term trend would remain weak unless the index moves above 57,000.
- Market trigger
- The Federal Open Market Committee meeting, crude oil prices and expectations of a Federal Reserve rate hike were identified as potential market drivers.
Sources
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