The Indian equity markets ended the week on a negative note, pressured by weak corporate earnings and global tariff uncertainties. Amid this cautious sentiment, market expert Jay Thakkar has identified three stocks\u2014Adani Energy Solutions, Colgate Palmolive, and Varun Beverages\u2014as short-term trading opportunities in the Futures & Options (F&O) segment, anticipating near-term upside.<\/p>\n
Indian stock indices witnessed a broad selloff on Friday, July 11, amid concerns over potential tariff hikes by the US government and subdued early earnings from large-cap companies. The Sensex ended 689.81 points lower at 82,500.47, while the Nifty 50<\/a> closed down by 205.40 points at 25,149.85, reflecting broader market unease.<\/p>\n One key concern was the possible imposition of a 35% US tariff on goods imported from Canada, which added to global trade tensions already weighing on investor sentiment. Additionally, muted results from frontline IT companies intensified risk aversion across sectors.<\/p>\n Also Read : HCL Tech Q1 Preview: Muted Profit Outlook, Seasonal Weakness; Guidance & Deals in Focus<\/a><\/p>\n Jay Thakkar notes that Nifty 50 continues to consolidate in a narrow band between 25,300 and 25,700. Despite this, the Implied Volatility (IV) has dropped below 11, suggesting subdued short-term movement\u2014an indicator that often precedes a breakout. The Put-Call Ratio (PCR) remains under 1 at 0.85, but breadth has not deteriorated significantly.<\/p>\n Crucially, options data indicates the 25,500 strike has the highest open interest (OI) on both calls and puts, making it a pivotal level. Sustained trading above this zone could lead to a rally toward 25,700\u201325,800, and possibly 26,000. On the downside, a close below 25,300 would negate this bullish setup.<\/p>\n Entry Zone (Futures): \u20b9905\u2013\u20b9895<\/p>\n<\/li>\n Stop Loss: \u20b9875<\/p>\n<\/li>\n Target Range: \u20b9945\u2013\u20b9965<\/p>\n<\/li>\n<\/ul>\n Adani Energy Solutions has shown strong derivative activity since entering the F&O segment, with long positions being consistently built. The \u20b9900 strike call option holds the highest OI, pointing to a resistance-turned-support level.<\/p>\n Put writing at lower strikes and the stock\u2019s current position above its max pain levels further strengthen the bullish case. Thakkar believes the stock is poised for a breakout following a consolidation phase and recommends buying in the \u20b9905\u2013\u20b9895 range.<\/p>\n Entry Zone (Futures): \u20b92,465\u2013\u20b92,435<\/p>\n<\/li>\n Stop Loss: \u20b92,380<\/p>\n<\/li>\n Target Range: \u20b92,600\u2013\u20b92,700<\/p>\n<\/li>\n<\/ul>\n Colgate Palmolive is forming a solid base at lower levels, and data indicates short positions are being covered after significant build-up during the recent fall. Strong put writing at the \u20b92,400 level suggests good downside protection.<\/p>\n The \u20b92,500 call has the highest OI, making it a resistance to watch. A close above \u20b92,500 could open the door to higher levels. With the risk-reward skewed in favor of buyers, Thakkar recommends long positions in the current zone.<\/p>\n Entry Zone (Futures): \u20b9470\u2013\u20b9465<\/p>\n<\/li>\n Stop Loss: \u20b9455<\/p>\n<\/li>\n Target Range: \u20b9485\u2013\u20b9500<\/p>\n<\/li>\n<\/ul>\n VBL has begun to reverse from its recent lows, with price action breaching previous swing highs. While Open Interest hasn\u2019t changed significantly, Thakkar notes that massive short build-up since its F&O debut could now lead to short covering, supporting near-term gains.<\/p>\n The reversal is seen as technically sound, with no fresh short additions, making it an ideal candidate for a short-term long trade.<\/p>\nNifty 50 Technical View: A Breakout May Be Imminent<\/h2>\n
Stock #1: Adani Energy Solutions \u2013 Long Build-Up Hints at Upside<\/h2>\n
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Stock #2: Colgate Palmolive \u2013 Short Covering Underway<\/h2>\n
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Stock #3: Varun Beverages (VBL) \u2013 Reversal Pattern with Short Covering Potential<\/h2>\n
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Jay Thakkar’s F&O Short-Term Picks<\/h2>\n