TCS, ITC Analyst Suggests Three Stocks for F&O Trading

Indian Stock Market Sees Positive Close Amid Global Concerns

The Indian stock market wrapped up the day on a high note, with key indices showing significant gains. The Nifty 50 index finished at 24,576.60, up 211.75 points or 0.87% from its previous close. The Sensex also concluded at 79,273.33, climbing by 753.03 points or 0.96%.

Market observers noted that investor sentiment improved due to optimism about a possible near-term reduction of tensions in the Middle East. Analysts pointed out that the market's positive momentum is likely to continue in the near term.

Key Market Figures

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Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, provided insights into the market's outlook. He noted that the Nifty 50 has closed well above 24,500 levels, indicating positive momentum in the near term. Thakkar also highlighted that the dip in the market is being bought into mainly due to short covering, which is helping the Nifty 50 to climb upwards.

Support and Resistance Levels

According to Thakkar, 24,500 is the immediate support level, with 24,300 and 24,000 being the next critical supports. If the market falls below 24,500, these levels can be tested, but if held, the Index is heading towards the next swing resistance of 24,800 and eventually 25,000 to 25,200.

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Thakkar also pointed out that the FII numbers are improving, with the Index short positions reduced by 1 lakh contracts. As of Monday's closing, the Index short positions stood at 1.90 lakh contracts, which is still high and hence there is a scope of further short covering in the future.

Stock Recommendations

Jay Thakkar recommends buying Bank of India futures in the range of ₹149-151, with a stop loss of ₹146 and targets of ₹155-158. He also recommends buying TCS futures in the range of ₹2,580-2,600, with a stop loss below ₹2,520 and targets of ₹2,700-2,760.

Additionally, Thakkar suggests buying ITC futures in the range of ₹308-312, with a stop loss below ₹302 and targets of ₹325-330.