ACC to TVS Motor -Jay Thakkar suggests three stocks to buy for short-term in F&O segment
Stock market news: Indian stock indices maintained an upward trend for the fourth consecutive session, bolstered by favorable global cues, relative calm regarding the Israel-Iran conflict, and the potential extension of the tariff deadline set for July 9 by the US government.
A spokesperson from the White House suggested on Thursday that the reciprocal tariff deadline might be postponed, but emphasized that the final decision rests with President Donald Trump. Meanwhile, President Trump indicated that a "great deal" involving India is forthcoming, which has improved investor confidence. The Indian negotiation team is currently in the United States working on a trade agreement.
India's robust domestic fundamentals, an agile RBI, and favorable monsoon conditions are supporting the financial markets. With US markets reaching record highs and the US dollar weakening, emerging markets such as India are expected to gain.
The Sensex concluded the day at 84,058 points, rising by 303 points, while the Nifty 50 finished at 25,637 points, up by 89 points.
Nifty 50 has provided a clean breakout from the sideways consolidation; thus, the short-term trend is bullish. The June series ended on a positive note as Nifty 50 closed above 25,300 levels and the FIIs also reduced their short positions on the Index to quite an extent i.e. from over 1 lakh to merely 35,000 contracts , they also had bought huge in the equity cash segment of over 12,500 crores.
So, the short covering coupled with strong buying in equity cash segment led to a clean breakout and thus the uptrend has been established. There was strong call writing in the range of 25,200-25,300 prior to the breakout, hence this range now becomes an immediate support, whereas, 26,000 to 26,300 are the short to medium term targets. The Bank Nifty has also provided a clean breakout above 56,500 levels, thus the supporting Nifty 50 to inch higher.
Jay Thakkar of ICICI Securities recommends TVS Motor Futures, Mahanagar Gas Futures, and ACC Futures.
TVS Motor has provided a breakout from the sideways consolidation with a clear long built up, indicating further uptrend in the stock. The stock has been one of the outperformers in the two-wheeler segment and hence the upside probability seems higher. There has been good put additions at the lower levels as well as call unwinding indicating good upside possibility. Currently, the stock is trading above its max pain and modified max pain level as well as its 20-day VWAP levels, hence the short-term trend appears bullish
Mahanagar Gas had seen huge short built in the previous fall post which the stock managed to bounced back and consolidate. In the entire consolidation period, the stock had witnessed short covering and finally it has provided a breakout from the consolidation which is much positive in the near term. The stock has now moved above its 20-day VWAP as well as its max pain and modified max pain levels, so the upside potential is higher.
The cements sector is witnessing good long built up overall and in the case of ACC short covering is expected in the short term as the stock has formed multiple bottoms as well as the sector is in overall uptrend. Although there is higher call base at 1900 and 2000 strikes, however, there is good unwinding of calls below 1900 strike, hence the uptrend has a higher probability in the near term. The stock is also trading well above its 20-day VWAP now as well as its above max pain level.
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 27/06/2025 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
21 minutes ago
- Hindustan Times
India-US trade talks need political push for final leg
The fine print of a preliminary trade deal between India and the US has mostly been worked out by negotiators from both sides but the ball is now in the court of the political leadership to break a stalemate, people aware of the parleys told HT, disclosing two of the topmost sticking points that remain. Trade experts said an interim trade deal between India and the US is possible by July 9, provided both respect practical and political sensitivities of each other. (AFP File) According to these people, these issues are: an unequivocal assurance that New Delhi seeks from Washington that all punitive levies will be repealed, and a freer access to India's politically sensitive agriculture sector that the American side has sought. 'The two-day deliberation that started in Washington on Thursday will likely stretch over to next week,' one of these people, who has direct knowledge of the talks, told HT. Both sides are in a sprint to announce a breakthrough, which will be a preliminary deal covering some portion of the trade between two nations, with a larger bilateral trade deal expected to be signed by October. Once the deal is done, India wants America to withdraw all existing and potential retaliatory tariffs, including the 26% reciprocal tariff — this comprises a 10% baseline tariff imposed from April 5 and an additional 16% country-specific levy set to trigger from July 9. India also wants the US to revoke all safeguard duties disputed at the World Trade Organisation—50% on Indian steel and aluminium and 25% on automobiles and auto parts—and to reciprocate New Delhi's move by proportionately slashing its most favoured nation tariffs. 'Washington has not yet given any unequivocal commitment on these matters, which are crucial for Indian interests,' another person said. American negotiators have been suggesting India replicate the US-UK Economic Prosperity Deal model, where Britain accepted continued 10% baseline tariffs on most goods while securing relief from additional sectoral tariffs. However, Indian negotiators have rejected this approach. The other sticking point is the US insistence on India opening its agriculture and farming sector. While the American side is open to tariff rate quotas (TRQ) — a mechanism under which concessional duty or duty-free access of any specified item applies to a limited quantity — their insistence on some sensitive sectors is a challenge. 'The problem lies in wanting India to also open its sensitive sectors. Dairy imports are restricted for two reasons. First, India's dairy farming is at a subsistence level with one or two cows or buffaloes. The livelihoods of millions of farmers are at stake as they could not compete with America's commercial-scale dairy farms. Secondly, the US cattle feed includes non-vegetarian products, something against religious sentiments of Indian consumers,' a third person said. Similarly, India is unable to accept the US demand to allow unrestricted access to American agricultural items such as corn and soybean because Indian law does not permit genetically modified crops. 'America is unwilling to accept an institutional mechanism which would certify that its India-bound agriculture produce are not genetically modified, saying there is a practical problem in segregating GM and non-GM products,' this person said. This person added that solving such issues now require a political directive from the highest levels of the government. 'While majority of issues have been resolved with near consensus, including on removing tariff and non-tariff barriers on most of the items of interest for both countries, certain sensitive matters require political directives from the two leaders. An interim India-US trade deal, mainly involving goods, is possible to conclude before July 9, depending on political resolution of the stalemate,' the second person said. The Indian negotiating team could extend its stay in Washington next week and the two parties would discuss contentious issues, depending on any political directive, according to the first person. The Indian negotiating team led by chief negotiator and special secretary-commerce Rajesh Agrawal was still in Washington on Saturday, indicating that talks may extend into next week. Trade experts said an interim trade deal between India and the US is possible by July 9, provided both respect practical and political sensitivities of each other. Global Trade Research Initiative founder Ajay Srivastava outlined a likely scenario: 'The more likely outcome is a limited trade pact—styled after the US-UK mini trade deal announced on May 8. Under such a deal, India is expected to cut MFN tariffs on a wide range of industrial goods, including automobiles, a persistent demand from Washington. In agriculture, India may offer limited market access through tariff reductions and TRQs on select US products such as ethanol, almonds, walnuts, apples, raisins, avocados, olive oil, spirits, and wine.' 'However, India is unlikely to budge on sensitive sectors. No tariff cuts are expected for dairy products or key food grains like rice and wheat, where farm livelihoods are at stake. These categories are politically and economically sensitive, affecting over 700 million people in India's rural economy,' he added. Srivastava warned that 'the talks may collapse' if the US continues to insist on opening India's core agriculture sectors or allowing entry of GM products. The prudent move for Washington would be to respect Indian sensitivities and forge a deal for stronger strategic cooperation in future, he said, noting that 'agricultural goods account for less than 5% of US exports to India.' Another expert working in a multinational consulting firm said: 'Now it is the time for America to act as India has already given several concessions, making its intent clear for stronger and everlasting economic cooperation with the US.' After a week where tariffs took a back seat to the US strike on Iran's nuclear facilities and the massive tax and spending bill in the US Congress, the Trump administration's trade negotiations have picked up. News agency Reuters reported Washington had sent a new proposal to the EU on Thursday and held talks with Japan on Friday. Both India and Japan are in advanced negotiations.
Hindustan Times
26 minutes ago
- Hindustan Times
What's in the latest version of Trump's big bill now before US Senate
At some 940-pages, the legislation is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defense and deportations. Now it's up to Congress to decide whether President Donald Trump's signature's domestic policy package will become law. US Senators were working through the weekend to pass the 'Big, Beautiful Bill' and send it back to the House for a final vote. (Getty Images via AFP) Trump told Republicans, who hold majority power in the House and Senate, to skip their holiday vacations and deliver the bill by the Fourth of July. Senators were working through the weekend to pass the bill and send it back to the House for a final vote. Democrats are united against it. Here's the latest on what's in the bill. There could be changes as lawmakers negotiate. Tax cuts are the priority Republicans say the bill is crucial because there would be a massive tax increase after December when tax breaks from Trump's first term expire. The legislation contains roughly $3.8 trillion in tax cuts. The existing tax rates and brackets would become permanent under the bill. It temporarily would add new tax breaks that Trump campaigned on: no taxes on tips, overtime pay or some automotive loans, along with a bigger $6,000 deduction in the Senate draft for older adults who earn no more than $75,000 a year. It would boost the $2,000 child tax credit to $2,200 under the Senate proposal. Families at lower income levels would not see the full amount. A cap on state and local deductions, called SALT, would quadruple to $40,000 for five years. It's a provision important to New York and other high tax states, though the House wanted it to last for 10 years. There are scores of business-related tax cuts. The wealthiest households would see a $12,000 increase from the legislation, which would cost the poorest people $1,600 a year, according to the nonpartisan Congressional Budget Office analysis of the House's version. Middle-income taxpayers would see a tax break of $500 to $1,500, the CBO said. Money for deportations, a border wall and the Golden Dome The bill would provide some $350 billion for Trump's border and national security agenda, including $46 billion for the U.S.-Mexico border wall and $45 billion for 100,000 migrant detention facility beds, as he aims to fulfill his promise of the largest mass deportation operation in U.S. history. Money would go for hiring 10,000 new Immigration and Customs Enforcement officers, with $10,000 signing bonuses and a surge of Border Patrol officers, as well. The goal is to deport some 1 million people per year. The homeland security secretary would have a new $10 billion fund for grants for states that help with federal immigration enforcement and deportation actions. The attorney general would have $3.5 billion for a similar fund, known as Bridging Immigration-related Deficits Experienced Nationwide, or BIDEN, referring to former Democratic President Joe Biden. To help pay for it all, immigrants would face various new fees, including when seeking asylum protections. For the Pentagon, the bill would provide billions for ship building, munitions systems, and quality of life measures for servicemen and women, as well as $25 billion for the development of the Golden Dome missile defense system. The Defense Department would have $1 billion for border security. How to pay for it? Cuts to Medicaid and other programs To help partly offset the lost tax revenue and new spending, Republicans aim to cut back some long-running government programs: Medicaid, food stamps, green energy incentives and others. It's essentially unraveling the accomplishments of the past two Democratic presidents, Biden and Barack Obama. Republicans argue they are trying to rightsize the safety net programs for the population they were initially designed to serve, mainly pregnant women, the disabled and children, and root out what they describe as waste, fraud and abuse. The package includes new 80-hour-a-month work requirements for many adults receiving Medicaid and food stamps, including older people up to age 65. Parents of children 14 and older would have to meet the program's work requirements. There's also a proposed new $35 co-payment that can be charged to patients using Medicaid services. Some 80 million people rely on Medicaid, which expanded under Obama's Affordable Care Act, and 40 million use the Supplemental Nutritional Assistance Program. Most already work, according to analysts. All told, the CBO estimates that under the House-passed bill, at least 10.9 million more people would go without health coverage and 3 million more would not qualify for food stamps. The Senate proposes a $25 billion Rural Hospital Transformation Program to help offset reduced Medicaid dollars. It's a new addition, intended to win over holdout GOP senators and a coalition of House Republicans warning that the proposed Medicaid provider tax cuts would hurt rural hospitals. Both the House and Senate bills propose a dramatic rollback of the Biden-era green energy tax breaks for electric vehicles. They also would phase out or terminate the various production and investment tax credits companies use to stand up wind, solar and other renewable energy projects. In total, cuts to Medicaid, food stamps and green energy programs would be expected to produce at least $1.5 trillion in savings. Trump savings accounts and so, so much more A number of extra provisions reflect other GOP priorities. The House and Senate both have a new children's savings program, called Trump Accounts, with a potential $1,000 deposit from the Treasury. The Senate provided $40 million to establish Trump's long-sought 'National Garden of American Heroes.' There's a new excise tax on university endowments. A $200 tax on gun silencers and short-barreled rifles and shotguns was eliminated. One provision bars money to family planning providers, namely Planned Parenthood, while $88 million is earmarked for a pandemic response accountability committee. Another section expands the Radiation Exposure Compensation Act, a hard-fought provision from Sen. Josh Hawley of Missouri, for those impacted by nuclear development and testing. Billions would go for the Artemis moon mission and for exploration to Mars. The bill would deter states from regulating artificial intelligence by linking certain federal AI infrastructure money to maintaining a freeze. Seventeen Republican governors asked GOP leaders to drop the provision. Also, the interior secretary would be directed to sell certain Bureau of Land Management acreage to provide for housing, but senators said that measure could be stripped out during the amendment process. Additionally, a provision would increase the nation's debt limit, by $5 trillion, to allow continued borrowing to pay already accrued bills. What's the final cost? Altogether, keeping the existing tax breaks and adding the new ones is expected to cost $3.8 trillion over the decade, the CBO says in its analysis of the House bill. An analysis of the Senate draft is pending. The CBO estimates the House-passed package would add $2.4 trillion to the nation's deficits over the decade. Or not, depending on how one does the math. Senate Republicans are proposing a unique strategy of not counting the existing tax breaks as a new cost because those breaks are already 'current policy.' Senators say the Senate Budget Committee chairman has the authority to set the baseline for the preferred approach. Under the Senate GOP view, the tax provisions cost $441 billion, according to the congressional Joint Committee on Taxation. Democrats and others say this is 'magic math' that obscures the true costs of the GOP tax breaks. The Committee for a Responsible Federal Budget puts the Senate tally at $4.2 trillion over the decade.
Indian Express
30 minutes ago
- Indian Express
Behind Mazagon Dock's Lanka deal: Eye on China, Colombo bailout plea
A strategic move to contain China's expanding footprint in the region, a Sri Lankan SOS for bailout, and a failing Japanese firm — these were among the factors that led to the Indian government-run Mazagon Dock Shipbuilders Limited's decision to acquire a controlling stake in Sri Lanka's Colombo Dockyard PLC under a US$ 52.96 million deal, officials have told The Indian Express. Announcing its decision on Friday, Mazagon Dock Shipbuilders Limited (MDL) had said: 'Located in the Port of Colombo, Colombo Dockyard PLC (CDPLC) gives MDL a strategic foothold in the Indian Ocean Region — a key maritime corridor.' CDPLC, listed on the Colombo Stock Exchange, is the flagship of Sri Lanka's maritime industry and serves a wide spectrum of commercial and governmental clients across Asia, Middle East and Africa. Officials from both the Sri Lankan and Indian governments worked overtime to conclude this strategic deal on Sri Lanka's largest shipyard, said sources. According to officials, CDPLC has been in dire straits for some time. 'Since it is 51% owned by Onomichi Dockyard Company Ltd, they initially sought relief from the Government of Japan, and thereafter from the Government of Sri Lanka. However, neither government could provide any financial relief to them,' an official said. At the end of November 2024, Onomichi Dockyard exited from CDPLC. At this point, officials said, the Sri Lankan government requested the Indian government to encourage Indian investors to look at Colombo Dockyard. 'A default by CDPLC would be serious for the Sri Lankan government as, out of the remaining 49% stake, around 16% is owned by their Employees' Provident Fund. Sri Lanka's insurance fund owns around 9%, Sri Lanka Ports Authority 5% and so on. A default would also have brought great financial distress and uncertainty for the workers employed in Colombo Dockyard,' the official said. 'A few companies, with strong credentials, expressed an interest in CDPLC. As per the due process followed for a listed company, MDL was shortlisted in view of its prowess in shipbuilding as well as its financial strength. Both these aspects are key for the turnover of Colombo Dockyard,' the official said. MDL's net worth, represented by its market capitalisation, is approximately $15.12 billion as of June 25, 2025. The company is almost debt-free. It has reported a turnover of approximately $1.13 billion, according to officials. MDL's decision is expected to significantly change the shipbuilding and ship repair landscape in the region. With CDPLC its first international venture, it is seen as a major milestone in the company's transformation from a purely domestic shipbuilder into a regional maritime player with global aspirations. 'It demonstrates the appetite by Indian industry, including PSUs, to acquire strategic assets overseas and to build investment-led partnerships,' the official said. On the other hand, MDL's controlling stake will serve as a force multiplier for CDPLC, said officials. MDL will bring an order pipeline for CDPLC from both domestic and international market for repairs, refits and new builds, they said. The move is expected to boost the existing revenue stream from the Indian sub-continent's ship repairs. A number of orders for which potential clients are approaching MDL can be diverted to CDPLC, the official said. On sharing of expertise, the official said both the shipyards possess enormous expertise garnered over the past decades. 'This strength can be leveraged for mutual benefit and can result in a win-win scenario,' the official said. The resources available at both the yards can be shared for mutual benefit. 'For instance, the detailed design capabilities possessed by both the yards can be leveraged for projects at MDL as well as at CDPLC,' the official said. CDPLC, which is currently under financial distress, can benefit from MDL's strong financial capabilities, thereby expediting the turnaround process. CDPLC will now be in a position to secure contracts which it missed earlier due to poor financial health, the official said. In a regulatory filing, the Mumbai-headquartered shipbuilder said the proposed acquisition would enable the company to strengthen its position in the ship repair and shipbuilding industry by unlocking operational synergies, enhancing research development capacities and expanding market reach. 'It supports the company's long-term growth vision in the shipbuilding and ship repair industry,' it said. The move comes amid concerns in New Delhi over Beijing's persistent attempts to expand its strategic influence in the island nation. China Merchants Port Holdings holds an 85% stake in Hambantota International Port Group (HIPG) and secured a 99-year lease on the Hambantota International Port (HIP) in Sri Lanka in 2017. In July 2024, CDPLC and HIPG signed an agreement to set up a full-fledged workshop at HIP. Shubhajit Roy, Diplomatic Editor at The Indian Express, has been a journalist for more than 25 years now. Roy joined The Indian Express in October 2003 and has been reporting on foreign affairs for more than 17 years now. Based in Delhi, he has also led the National government and political bureau at The Indian Express in Delhi — a team of reporters who cover the national government and politics for the newspaper. He has got the Ramnath Goenka Journalism award for Excellence in Journalism '2016. He got this award for his coverage of the Holey Bakery attack in Dhaka and its aftermath. He also got the IIMCAA Award for the Journalist of the Year, 2022, (Jury's special mention) for his coverage of the fall of Kabul in August 2021 — he was one of the few Indian journalists in Kabul and the only mainstream newspaper to have covered the Taliban's capture of power in mid-August, 2021. ... Read More
