Opening Bell: IDFC First Bank to LIC Housing — Jay Thakkar suggests three stocks to buy for short-term in F&O segment

Stock market today: The domestic benchmark indices, Sensex and Nifty 50, experienced a subdued opening on Wednesday with slight upward movement, following significant gains over the past two sessions as investors evaluated modifications in US tariffs.

Sensex declined 165.3 points to 76,569.59 in early trade; Nifty 50 dipped 51.55 points to 23,277.

On Tuesday, the Sensex and Nifty 50 jumped more than 2%, following a rally in international markets after US President Donald Trump eased certain tariffs on electronic products and suggested revisions for automobile duties.

US stock markets closed slightly down on Tuesday amid continued uncertainty over tariffs, with shares in consumer and healthcare sectors declining, although positive results from banks offered some support.

Following several weeks of significant market fluctuations, US markets experienced a period of relative calm.

Asian stock indices opened on a negative note today, with Japan's Nikkei 225 dropping by half a percent, alongside declines in South Korea's Kospi and Kosdaq indices. The Hang Seng index in Hong Kong saw a decrease of about one percent, while Taiwan's main index also faced losses.

In March, India's consumer price inflation fell to a 67-month low of 3.34 percent, a level not reached since 2019. This decline in inflation is attributed to further reductions in food prices, leading economists to strengthen their predictions for an additional rate cut at the Reserve Bank of India's June policy meeting.

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

Nifty 50

Nifty 50 again opened gap up and closed well above 23,000 levels, so it has surpassed its resistance range of 22,800 to 23,000 levels and it will now act as a crucial support. The PCR has remained unchanged at 0.81, however, 23,300 strike put option has witnessed huge additions and its PCR is 1.22, so the immediate support is 23,300 levels and below that its straight away 23,000 levels.

On the upside, 23,500 is an immediate resistance as its PCR is 0.12, so the short-term range is 23,300 to 23,500 and the broader range is 23,000 is 23,500 levels. There are 2 gaps in this bounce back and if this happens to be a short covering rally then these gaps will be filled in future and if this is a start of something new leg on the way up then it may not fill the gap.

The India VIX has also fallen quite sharply to 16 levels now indicating that the short-term fear is out and this is supportive for the equity markets. Based on these observations the trend is up and it is recommended to buy Index on dips for the positional target of 23,500 and only above that it may rally up to 23,800 levels.

Stocks To Buy or Sell in the near-term - Jay Thakkar

Jay Thakkar of ICICI Securities recommends LIC Housing Finance Futures, Zydus Lifesciences Futures, and IDFC First Bank Futures.

Buy LIC Housing Finance Futures in the range of ₹586-590 Targets: ₹600 and ₹610 Stop Loss: ₹575

LIC Housing Finance share price had corrected mainly due to long liquidation i.e. unwinding of long positions =, however, now the OI has reached to the lower levels and prices have started to move higher and it has provided a breakout as well, so this can lead to long built going forward.

There is huge call OI built up at 600 strike which may restrict the up move up to 600 initially, however, there has been call unwinding at ATM and ITM strikes as well as significant put additions at ATM and OTM strikes which has helped the overall PCR to move up to 0.71 levels now. Overall, BFSI sector is outperforming, hence this stock is also likely to benefit from the same.

Buy Zydus Lifesciences Futures in the range of ₹879 to 883 Targets: ₹920 and ₹940 Stop Loss: ₹858

Zydus Lifesciences share price had corrected by almost 40% from the top on account of long liquidation and now it seems to be forming a base and reversing its trend from down to up. There has been significant put writing from 800 to 900 strikes with increase in put OI at 870 and 880 strikes which makes a case of an uptrend from herein.

There has been call unwinding at almost all strikes indicating that the bears are covering their short positions and this can help the bulls in the near term. The PCR has improved and its now at 0.98 levels. Although the stock is trading below its max pain and modified max pain of 880 and 884 respectively as well as below its 20-day VWAP level, the options activity indicates a short-term trend reversal from down to up.

Buy IDFC First Bank Futures in the range of ₹61.80 to ₹62.20 Targets: ₹65 and ₹67 Stop Loss: ₹59

IDFC First Bank share price had corrected heavily due to significant short additions and there has been short covering since its last leg of the fall indicating that there is a higher chance of further short covering which will help the Index to inch higher from hereon as well.

It has also provided a breakout from the falling trend line indicating that the trend has been reversed. The PCR is now at 0.98 almost neutral as there has been huge put additions at the lower levels and there is further short covering expected from the call writers stuck at strike price of 60 as that still has highest call OI.

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 15/04/2025 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.