Source: Mint
On Wednesday, the Indian stock market opened in positive territory, driven by easing geopolitical tensions and the possibility of a potential interest rate cut by the US Federal Reserve. Investor sentiment was also lifted after US President Donald Trump and Prime Minister Narendra Modi spoke for the first time since June, suggesting an improvement in trade relations between the two countries.
The Nifty 50 was up by 0.32% at 25,319.55, while the Sensex surged by 0.32% to 82,635.83 as of 10:53 AM IST. Earlier in the day, the Nifty opened at 25,276.60 and the Sensex opened at 82,498.97. Analysts stated that the trade talks between India and the US that lasted more than seven hours were said to be “positive,” boosting market sentiment.
Nifty 50 and Bank Nifty straight
As per Jay Thakkar – Vice President & Head of Derivatives and Quant Research at ICICI Securities – the Nifty 50 has managed to break above the 25,150 levels, which is a positive thing. The Nifty has support at 25,150 and 25,000, while the upside target is around 25,700 in the short to medium term. The options data is also showing some strength, as we are seeing put writing between 25,000 – 25,200 and then some resistance is building near 25,500 – 26,000.
The Bank Nifty is strong with short covering and robust put writing at the 55,000 strike. As long as the 54,500–55,000 support zone continues to be protected, the index is primed to test 56,000 in the near term.
Three Stocks to Purchase for Short-Term
In an article – “Options for Short-Term Traders” – Thakkar suggests three futures & options (F&O) stocks for those trading on an F&O basis.
Infosys Futures
- Buy Price: ₹1,510–₹1,520
- Stop loss: ₹1,470
- Targets: ₹1,560 and ₹1,585
Thakkar wrote: “Infosys has recently declared one of its largest share buybacks in history. Between the positive sentiment from the order and short covering in IT stocks, the sentiment has shifted to a positive bias.”
State Bank of India (SBI) Futures
- Buy Between: ₹832 and ₹838
- Stop loss: ₹824
- Targets: ₹860 and ₹880
Reason: SBI is forming a symmetrical triangle chart pattern. The options data indicate strong support near ₹820–₹800, with resistance around ₹840. A breakout above this level could trigger additional gains.
Futures for Bajaj Finserv
- Purchase price of ₹2,090–₹2,100
- Stop Loss: ₹2,030
- Target Price: ₹2,200 & ₹2,260
Rationale: Bajaj Finserv has been trading above its 20-day VWAP and max pain level of ₹2,040. Significant resistance lies above at ₹2,100, and a push above this area will see more upside.
To summarize:
Analysts expect Indian markets to be positive in the short term with improving international cues and strong technical signals. Traders may track Infosys, SBI, and Bajaj Finserv in the F&O space for meticulous short-term trades while keeping strict stop losses in place.
