Bajaj Auto to Tata Power - Jay Thakkar suggests three stocks to buy or sell for short-term in F&O segment

Stock market today: Indian markets began on a cautious note on Wednesday, reflecting mixed global signals and renewed worries regarding U.S.-China trade relations. By 10:52, the BSE Sensex reached 82,435.30, climbing by 405.32 points or 0.49 percent, while the Nifty 50 was at 25,288 . 15, increasing by 145.65 points or 0.58 percent.

On Tuesday, Federal Reserve Chair Jerome Powell mentioned that the U.S. labor market remained sluggish, whereas the economy seemed to be on a stronger path, adding that the inflation projection has not changed since September, when the central bank lowered rates by 25 basis points.

Experts stated that Fed Chair Powell's comments reinforcing expectations for a rate cut in October and suggesting a pause in balance sheet reduction are positive news for bullish investors. Lower interest rates in the U.S. enhance the appeal of emerging markets like India to foreign investors, as the yields on dollars and Treasury securities are generally lower.

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

Nifty 50

Nifty 50 has once again reversed from the upper end of the range i.e. 25,300-25,500 levels and with this reversal there is a higher possibility that the Index again gets into the broader range of 24,750-25,450 levels. Since, there has been higher lows, so 24,750 levels now seem to be a crucial support.

Overall, the banking and financial sector has outperformed the Nifty 50 in the near term, however, due to fall in CPI numbers again increases the expectations of further rate cut by RBI which could again put some pressure on the Banking and financials stocks leading to some more consolidation.

The IT stock results so far has been decent, however, there has not been much of negative surprise due to which there has been some bounce in the Nifty IT Index, however, there has not been much of short covering thus not resulting in clear decisive indication of a reversal from down to up. The options data indicate that there the Nifty 50 is likely to trade within a range of 25,500-24,800 for the next weekly expiry as there has been significant call writing at the higher levels from 25,300-25,500 range whereas there has been quite less put additions due to which the PCR has fallen from 1.04 to 0.68 levels indicating that the bears have an upper hand in the next weekly expiry, so any bounce towards 25,300-25,350 range should be utilised as a selling opportunity for the targets of 25,100 to 25,000 levels and buy on dips near 25,000 levels for the targets of 25,300-25,500 with a stop loss of 24800, so this is how one can trade this range bound session.

Above 25,450-25,500 levels there will be a sharp short covering by the FIIs in the Index which will take the Index to 26,000 levels and till that happens the Index will trade sideways to neutral. The India VIX has been rising since 2 trading sessions from 10 levels up to 11.67 levels however, there has been a range of 12.50 to 10 since past couple of weeks and only above 12.50 levels there will a caution signal from VIX as above 12.50 it can extend it rise until 15 to 18 levels as well which can lead to pressure in the Index. So, until India VIX is sustaining below 12.50 levels on a closing basis, the probability of Index trading within the range of 24,800-25,500 is quite high.

Stocks To Buy in the near-term - Jay Thakkar

Jay Thakkar of ICICI Securities recommends Bajaj Auto Futures, Sona BLW Precision Forgings Futures, and Tata Power Futures.

Buy Bajaj Auto Futures in the range of ₹9,090-9,110 for the targets of ₹9,250; stop loss ₹8,940

Bajaj Auto has provided a breakout from the falling trendline with a decrease in open interest indicating short covering which is a positive sign in the near term. The options data also indicate that there has been call unwinding at 8900 and 9000 levels and the stock is trading well above those levels, hence these levels will act as a support going ahead. Now, there is no major hurdle util 9500 as there is where there is next highest call base, hence there is a good risk: reward ratio on the long side, hence it is recommended to buy. The stock is also trading well above its 20-day VWAP and its max pain levels and these will also act as support in the near term

Buy Sona BLW Precision Forgings Futures in the range of ₹457-453 for the targets of ₹475 and ₹490 stop loss ₹435

Sona BLW Precision has provided a breakout from the falling trendline with a decrease in open interest which indicates short covering thus it’s a positive thing in the near term. On the options front, 460 strike has the highest call base which may act as a hurdle in the near term, however, there has been call unwinding at the lower levels from 450-420 levels which is a positive sign in the near term. The stock has jumped above 445 levels which is the max pain level as well as the prices have moved above VWAP levels which is also positive in the near term.

Buy Tata Power Futures in the range of ₹1,285-1,295 for the targets of ₹1,340 and ₹1,365 stop loss ₹1,255

The stock has provided a breakout from the falling trend line with a decrease in open interest indicating short covering which is a positive sign in the near term. As per the options data, there is significant call base at 1,300 levels, however, there was also quite a call unwinding from 1,260-1,300 levels which is a positive sign in the near term. At the current levels, 1,300 strike has witnessed put additions as well as at the lower levels there has been put additions from 1,200 to 1,280 levels, so there are good support at the lower levels. So, above 1,300 levels, there will be a good short covering expected for the targets of 1,340 to 1,365 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 14/10/2025 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.