Latest news with #JayThakkar
Mint
4 days ago
- Business
- Mint
Adani Energy to Varun Beverages - Jay Thakkar suggests three stocks to buy for short-term in F&O segment
Stock market news: The Indian stock markets wrapped up the day in negative territory on Friday, largely due to a sluggish start to the first quarter earnings season and rising tariff threats from the US, which may impose a 35% tax on goods imported from Canada. By the end of the trading session, the Sensex fell by 689.81 points or 0.83%, concluding at 82,500.47, while the Nifty 50 declined by 205.40 points or 0.81%, finishing at 25,149.85. Numerous market analysts highlighted the renewed worries over tariffs and disappointing corporate earnings, particularly in the IT sector, as significant factors contributing to the negative market sentiment. Nifty 50 has been consolidating within a narrow range of 25,600 to 25,700 on the upside whereas 25,400 to 25,300 on the lower side, so the short-term range is 25,600-25,400 and beyond that its 25,700 to 25,300. It has been quite a while that the Index has been trading within this range and the IVs have fallen below 11 now which has lower IVP and IVR levels indicating that there is a higher possibility of an increase in IVs mostly due to weekly expiry or with the start of the result season, so a breakout is quite likely from this range. Since, the trend prior to this consolidation was up, so the upside breakout probability is higher. Based on the options data, it seems that if Nifty 50 manages to sustain above 25,500 levels, then the bulls have an upper hand as both the call and put base is highest at 25,500 levels, so above it means bullish and vice-versa. The PCR is still below 1 at 0.85, however, the breadth has now weakened much despite a long consolidation, indicating a completion of sideways move. So, until 25,300 levels are held on a closing basis, one can initiate long on Nifty 50 for the targets of 25,700 and 25,800 levels on an immediate term and above those it can inch towards 26,000 levels as well. Jay Thakkar of ICICI Securities recommends Adani Energy Solutions Futures, Colgate Palmolive (India) Futures, and Varun Beverages Futures (VBL). Adani Energy Solutions has been consolidating since couple of days and prior to that it had corrected a bit, however, since its entry in the derivatives segments, the stock has witnessed long built up and it continues to increase indicating that there is a higher probability of an upside from current levels. Options data indicates that the 900 strike has the highest OI, so above that there will be an increase in upward momentum, the put additions at the lower levels has increased which indicates good support at the lower levels. The stock is also trading well above its max pain and modified max pain levels which is a positive sign in the near term. Colgate Palmolive has been forming a base at the lower levels and the short has seen some short covering in the near term. In the previous fall the stock had witnessed huge short built up and now since there is a sign of short covering in the futures data, the upside probability is higher thus offering a better risk: reward ratio. The highest put base is at 2400 and there are overall good put additions at 2400 and below the same, whereas, 2500 strike has the highest OI, indicating support at the lower levels, whereas, resistance only at 2500 levels beyond which the upside potential is higher. VBL seems to be forming the base as the prices are now reversing taking off its previous swing highs and with that there has so far, no change in the Open Interest in futures segment. The stock has witnessed huge short built up since its entry in the F&O segment and with the price reversal, the stock is likely to witness short covering, hence one can go long on VBL. 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 08/07/2025 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.
Economic Times
7 days ago
- Business
- Economic Times
Trade TCS ahead of Q1 results with Short Iron Butterfly strategy to gain advantage of Theta decay
Tata Consultancy Services shares are experiencing a short buildup. The medium-term trend is sideways to negative. ICICI Securities suggests a Short Iron Butterfly strategy. A positive result could trigger short covering, potentially reaching Rs 3,600. Negative results may add pressure. Support lies in the Rs 3,200-3,250 range. The short-term range for July is Rs 3,200 to Rs 3,700. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Below is the payoff graph of the strategy: The shares of Tata Consultancy Services (TCS) have witnessed a short buildup in the futures segment, and the overall medium-term trend so far has been sideways to negative.'The upward momentum in the stock can be triggered due to a positive outcome from the result, as that can lead to short covering, which eventually will get the stock to its recent swing high of Rs 3,600 or beyond that,' said Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI case the result is negative or below expectations, Thakkar believes that there can be additional shorts, which will add pressure on the most of it seems to be priced in the stock in the previous fall.'Therefore, in case of muted results or guidance, the stock can trade with a sideways to negative bias wherein the support on the lower side is in the range of 3200-3250 levels,' Thakkar on the above analysis, Thakkar noted the short-term range for the July series as Rs 3,200 to Rs 3,700. Currently, the stock is placed in the middle of the range at around Rs 3,400 the upside, the Rs 3,500 strike has the highest call OI, indicating that the market participants are not expecting more upside. Therefore, only above Rs 3,500, one can expect the stock to continue its short-term IVs are at 23.40 levels with IVP of 79 and IVR of 42, indicating that the market move can be quite within a Jay Thakkar suggests deploying a Short Iron Butterfly strategy , which has a limited gain and limited case the stock doesn't react to the result, there is a high probability of theta decay , which will make the strategy Iron ButterflyIn a short straddle, the trader sells a call and a put at the same strike price to receive the premiums on both the short call and short put positions. We deploy this strategy when we expect the underlying to consolidate in a range before taking any further direction. Straddle selling is usually advised for expert traders and for conservative traders, it is best to buy hedges for protection, thus converting the straddle into an Iron Thakkar noted that the total Inflow in this strategy is 90.05 points, which is the maximum gain, whereas the max loss will be of 29.95 risk-reward ratio is 1:3, which is quite the stock trades within the range of Rs 3,470 to Rs 3,290, then the strategy will be profitable and beyond that the loss is limited up to 29.95 points.(Source: ICICI Securities): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
7 days ago
- Business
- Time of India
Trade TCS ahead of Q1 results with Short Iron Butterfly strategy to gain advantage of Theta decay
Tata Consultancy Services shares are experiencing a short buildup. The medium-term trend is sideways to negative. ICICI Securities suggests a Short Iron Butterfly strategy. A positive result could trigger short covering, potentially reaching Rs 3,600. Negative results may add pressure. Support lies in the Rs 3,200-3,250 range. The short-term range for July is Rs 3,200 to Rs 3,700. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Below is the payoff graph of the strategy: The shares of Tata Consultancy Services (TCS) have witnessed a short buildup in the futures segment, and the overall medium-term trend so far has been sideways to negative.'The upward momentum in the stock can be triggered due to a positive outcome from the result, as that can lead to short covering, which eventually will get the stock to its recent swing high of Rs 3,600 or beyond that,' said Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI case the result is negative or below expectations, Thakkar believes that there can be additional shorts, which will add pressure on the most of it seems to be priced in the stock in the previous fall.'Therefore, in case of muted results or guidance, the stock can trade with a sideways to negative bias wherein the support on the lower side is in the range of 3200-3250 levels,' Thakkar on the above analysis, Thakkar noted the short-term range for the July series as Rs 3,200 to Rs 3,700. Currently, the stock is placed in the middle of the range at around Rs 3,400 the upside, the Rs 3,500 strike has the highest call OI, indicating that the market participants are not expecting more upside. Therefore, only above Rs 3,500, one can expect the stock to continue its short-term IVs are at 23.40 levels with IVP of 79 and IVR of 42, indicating that the market move can be quite within a Jay Thakkar suggests deploying a Short Iron Butterfly strategy , which has a limited gain and limited case the stock doesn't react to the result, there is a high probability of theta decay , which will make the strategy Iron ButterflyIn a short straddle, the trader sells a call and a put at the same strike price to receive the premiums on both the short call and short put positions. We deploy this strategy when we expect the underlying to consolidate in a range before taking any further direction. Straddle selling is usually advised for expert traders and for conservative traders, it is best to buy hedges for protection, thus converting the straddle into an Iron Thakkar noted that the total Inflow in this strategy is 90.05 points, which is the maximum gain, whereas the max loss will be of 29.95 risk-reward ratio is 1:3, which is quite the stock trades within the range of Rs 3,470 to Rs 3,290, then the strategy will be profitable and beyond that the loss is limited up to 29.95 points.(Source: ICICI Securities): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
7 days ago
- Business
- Economic Times
Deploy Long Iron Condor in Nifty to play directional move in index
Nifty has been consolidating within a range of 25,600 to 25,400, i.e., 200 points, and the IVs have reached approximately 10.80 levels with an IVP at 4 for the look-back period of 250 days.'It is very much likely that the Index will provide a move in the near term,' believes Jay Thakkar, Head Derivative and Quant Research, ICICI the upside, he stated that until the 25,600 levels are not taken off, the probability of this weekly
Mint
02-07-2025
- Business
- Mint
Divis Labs to JSW Steel - Jay Thakkar suggests three stocks to buy for short-term in F&O segment
Stock market today: Indian equity indices remained largely unchanged on Wednesday as financial stocks retraced from their near-record peaks, counterbalancing the positive sentiment surrounding a potential trade agreement with the U.S. Meanwhile, HDB Financial Services, the largest IPO of the year, made its market entry at a 13% premium. On Tuesday, President Donald Trump indicated that the U.S. might finalize a trade arrangement with India, which could assist the South Asian nation in evading the 26% reciprocal tariff he announced on April 2, a decision he has temporarily suspended until July 9. As of 12:59 IST, the Nifty 50 dipped by 0.26% to reach 25,474 points, while the BSE Sensex decreased by 0.28% to stand at 83,463.76. Nifty 50 seems to be consolidating again after having provided the breakout from the previous range of 25,300 to 24,800. This week the call writers have an upper hand as 25,600 and 26,000 strikes have huge built up whereas on the put side there is no major built up below 25,500, hence below 25,500 there can be retest of the previous breakout level of 25,300. The FIIs have reduced their shorts which is a positive sign for the bulls, however, until 25,600 levels are not taken off the overall trend remains sideways to negative for 25,300 levels. The PCR has fallen below 1 and its now at 0.67 thus not oversold as well, hence a scope of further consolidation. Above 25,600, one can assume the consolidation to be over and start of another leg up in which Nifty 50 should first inch towards 25,800 and thereafter 26,000 levels. Jay Thakkar of ICICI Securities recommends Godrej Consumer Products Futures, Divis Laboratories Futures, and JSW Steel Futures. Buy Godrej Consumer Products Futures in the range of ₹ 1,190 to ₹ 1,180 stop loss: ₹ 1,147; Targets: ₹ 1,240 and ₹ 1,275 Godrej Consumer Products had witnessed sharp bounce back on account of short covering but it again went into some correction, however, there was no major short built up this time, hence it is likely to reverse on the upside from the current levels. The stock has huge call base at 1200, so once those levels are taken off the momentum on the upside will increase. Buy Divis Laboratories Futures in the range of ₹ 6,820 – ₹ 6,830; stop loss: ₹ 6,650; Targets: ₹ 7,050 and ₹ 7,200 Divis Laboratories Futures was in the consolidating zone of 6,750 to 6,500, however, it has managed to break above it and close as well. The stock has seen good long built-up cycle overall and so the short to medium term trend continues to be bullish. The stock does have higher call base at 6800, however, above that its directly 7,200, hence a good upside potential. Buy JSW Steel Futures in the range of ₹ 1,030 – 1,040; stop loss: ₹ 990; Targets: ₹ 1,100 and ₹ 1,140 The stock has provided a nice breakout from the consolidating range of 1,050 to 950, hence an uptrend is likely from hereon. The stock witnessed the previous rally on account of short covering and now it has now witnessed long built-up cycle, hence the short term to medium term trend remains bullish. 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 01/07/2025 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.
