IEX's Jay Thakkar Identifies Key Stocks for Short-Term Trades in F&O Segment

Indian Stock Market Opens on a Negative Note

The Indian stock market began the day on a negative note, as reflected in the Gift Nifty Live Chart, which showed a discount of 196 points from the Nifty futures' previous close of 23,612 by 8:23 AM. The Indian benchmark indices, Sensex and Nifty 50, finished slightly lower on Tuesday, 19 May, amid profit booking, as investors exercised caution amid mixed global signals, ongoing uncertainty over the US-Iran conflict, high crude oil prices, and the ongoing weakness of the rupee.

Market Performance

The BSE Sensex dropped by 114 points, equivalent to 0.15%, to close at 75,200.85, while the NSE Nifty 50 decreased by 32 points, or 0.14%, ending at 23,618. Despite Brent crude prices falling by nearly 2% amid growing hope of a US-Iran peace agreement, market sentiment remained strained by continued worries about the Indian currency. As reported by PTI, the rupee reached a new all-time low of 96.52 against the US dollar on Tuesday.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Market Outlook

According to Jay Thakkar, Vice President & Head of Derivatives and Quant Research, ICICI Securities, the Nifty 50 has been consolidating between 23,800 and 23,250 levels, forming a symmetrical triangular pattern. For the next couple of days, the market is expected to hold this range, and only once it breaks, a directional move can be expected.

Stock Recommendations

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Jay Thakkar recommends the following stocks for short-term investment:

IEX Futures

• Buy in the range of ₹124-126
• Stop loss below ₹119
• Targets of ₹130-134 IEX has been consolidating within a range of 120-130 for some time now, and there have been short additions in this stock in the recent fall. Now, since it has taken a good support again near 120 levels, a short covering move is expected, which can again take it to the upper end of the range i.e. 130 and beyond that 134.

Glenmark Pharmaceuticals Futures

• Buy in the range of ₹2,390-2,410
• Stop loss below ₹2,330
• Targets of ₹2,550 and ₹2,650 levels Glenmark has provided a breakout from multiple swing resistances and has recently retested the same. Now, it has again started to form higher tops and bottoms with an increase in OI indicating fresh long built up. Hence, one can go long on this stock from hereon as the risk: reward is in favor of the bulls.

Titan Company Futures

• Sell in the range of ₹4,110-4,090
• Stop loss above ₹4,185
• Targets of ₹3,800-3,900 Titan has been forming lower tops and bottoms, and with that, there has been a decrease in the OI indicating long unwinding in the stock. Hence, the selling pressure is expected in the current series at least until the monthly settlement day.