Infosys to Astral - Jay Thakkar suggests three stocks to buy for short-term in F&O segment

Stock market today: The Indian stock markets opened on a positive note on Wednesday, bolstered by optimism surrounding a potential trade agreement between India and the US, ongoing foreign investment, and encouraging economic indicators.

As of 12:06 IST, the Sensex gained 214.05 points or 0.25 percent, reaching 79,792.32, while the Nifty 50 rose by 47.90 points or 0.18 percent to 24,210.50.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, emphasized that while terror attacks may succeed in causing loss of life, they cannot significantly alter our economy or markets. He noted that Pakistan's political instability and struggling economy are unlikely to adversely affect the Indian economy and markets. Today, the markets are likely to convey this message as the underlying factors remain favourable.

On the F&O segment, technical analysts highlighted that for the ongoing monthly expiry, open interest is dispersed, with the highest concentrations at the 24,000 Put and 24,500 Call strikes. The long-short ratio remains steady at 32%. Considering the strong buying momentum observed in recent sessions and the consolidation seen yesterday, analysts maintain a positive outlook on the market.

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

Nifty 50

Nifty 50 has broken out of 24,200 levels as well which is quite positive in the near term. Nifty has posted a positive close for six consecutive days and now as we move towards the monthly series F&O expiry the probability of short covering from current levels until the expiry is expected. Now, the base on the lower side has been shifted to 24,000 from 23,800 levels, so now until 24,000 levels are not broken the short-term trend is bullish for the targets of 24,500 to 24,800 levels.

The sectors which had seen higher short built up was Nifty IT has now shown some signs of trend reversal today and early indication of short covering, so if the short covering continues then Nifty 50 will further inch higher until 24500 to 24800 levels. The Nifty Bank so far has led the rally and the Nifty Bank to Nifty IT ratio has reached to last two years high, so from here on in the immediate basis if the ratio reverses from hereon i.e. it is at 1.60 then probably Nifty IT may witness short covering has it has highest short built up despite in last few days prices had bounced back the OI didn’t reverse but now with positive cues coming from the US there is a higher probability of a short covering which is witnessed in todays market start as well.

Stocks To Buy in the near-term - Jay Thakkar

Jay Thakkar of ICICI Securities recommends Infosys May futures, Astral May futures, and Colgate Palmolive (India) May futures.

Buy Infosys May futures in the range of ₹1,460 to ₹1,480; stop loss at ₹1,430; targets at ₹1,530 and ₹1,560

Infosys May futures has managed to hold on to its recent lows post its result as well and despite that the SOI had not come down but today with price moving above its previous high and overall Nifty IT reversing from down to up there is a higher chance of short covering, hence in the short term one can initiate longs from the perspective of short covering.

Buy Astral May futures in the range of ₹1,370 - ₹1,390; stop loss at ₹1,335; targets at ₹1,460 and ₹1,500

Astral May futures has taken a pause in its downtrend and seems to have formed a base as the prices are not falling below 125 levels and slowly it has been rising forming a base around ₹1,250 levels. The stock has fallen from ₹2,430 to ₹1,250 levels approximately on account of short covering however now the prices have reversed, hence short covering from current levels can’t be ruled out, hence the risk: reward is now better on the long side.

Buy Colgate Palmolive (India) May futures in the range of ₹2,650 to ₹2,680; stop loss at ₹2,580; targets at ₹2,780 to ₹2,850

Colgate Palmolive (India) May future has witnessed good trend reversal as far as prices are concerned and it has witnessed short covering as well, as the OI has been falling now, so the overall bias turns positive in the short term for a bounce back from short covering point of view.

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 22/04/2025 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.