2 weeks ago
Jay Thakkar names three F&O stocks amid market decline
Indian stock markets fell again on Wednesday, making it six losing sessions in a row.
Investors were worried because oil became more expensive and borrowing costs rose in several major countries.
Uncertainty involving Iran and the Strait of Hormuz added to those concerns.
Even so, analyst Jay Thakkar said the recent decline may be a normal pause rather than the start of a long-term fall.
He suggested buying futures contracts in Bharat Dynamics, Larsen & Toubro and L&T Finance.
Each trade has a suggested buying range, stop-loss level and price target.
He said the Nifty 50 could find support near 24,000 points.
He also warned that a fall below 23,500 could cause larger swings and a deeper correction.
Nifty 50 fell 0.35% to 24,070.65, extending its losing streak to six sessions.
Rising crude prices, global bond yields and Middle East uncertainty weighed on Indian equities.
Jay Thakkar identified Bharat Dynamics, Larsen & Toubro and L&T Finance for near-term F&O trades.
He placed Nifty 50 support at 24,000 and resistance at 24,600, while warning of deeper volatility below 23,500.
The recommended targets were ₹1,480–1,520 for Bharat Dynamics, ₹4,200–4,300 for L&T and ₹340–350 for L&T Finance.
- Who
- Jay Thakkar, Vice President and Head of Derivatives and Quant Research at ICICI Securities, and Indian equity-market investors.
- What
- Thakkar recommended three near-term futures trades while Indian benchmark indices extended their decline.
- Where
- India’s domestic stock market.
- When
- Wednesday; the market figures were reported as of 9:45 IST.
- Why
- Markets were pressured by elevated crude oil prices, rising global bond yields and uncertainty surrounding the Middle East conflict and the Strait of Hormuz.
Technical bullish case
Macro risk concerns
Meaning of the market decline
Technical bullish case
Thakkar said the correction could be part of consolidation because the overall trend still appeared bullish, with Bank Nifty and the mid- and small-cap indices relatively outperforming.
Macro risk concerns
The broader market remained weak, with 13 of 16 major sectors trading lower and mid-cap and small-cap indices down about 0.5%.
Near-term trading outlook
Technical bullish case
Thakkar pointed to support levels, positive futures positioning and options data as reasons for potential upside in the three recommended stocks.
Macro risk concerns
High crude prices, rising long-term borrowing costs and uncertainty over the Middle East conflict could reduce investor appetite for riskier emerging-market equities.
Downside risk
Technical bullish case
The analyst said bulls could dominate above 24,600 on the Nifty 50 and 58,500 on Bank Nifty.
Macro risk concerns
He warned that a break below 24,000 and 23,500 on the Nifty 50 could increase volatility and lead to a deeper correction.
Key facts
- Nifty 50
- Down 0.35% at 24,070.65 as of 9:45 IST; it had declined for six consecutive sessions.
- Sensex
- Down 0.32% at 76,991.33 as of 9:45 IST.
- Nifty support and resistance
- Immediate support was identified at 24,000 and resistance at 24,600; 23,500 was cited as another important level below support.
- Bharat Dynamics Futures
- Buy at ₹1,400–1,410; stated stop loss below ₹1,450; targets ₹1,480–1,520. The published stop-loss level is above the suggested entry range.
- Larsen & Toubro Futures
- Buy at ₹4,050–4,070; stop loss below ₹3,950; targets ₹4,200 and ₹4,300.
- L&T Finance Futures
- Buy at ₹322–327; stop loss below ₹314; targets ₹340 and ₹350.
- Market backdrop
- Brent crude moved toward $92 a barrel, while the US 30-year bond yield rose above 5.3%, according to the article.
Sources
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