Bajaj Finserv to Union Bank - Jay Thakkar Suggests 3 Stocks to Buy or Sell for Short-Term in F&O Segment

Why It Matters

The picks target oversold futures contracts where short covering could trigger rapid gains, offering a tactical edge for investors navigating heightened volatility in India’s derivatives market.

Key Takeaways

• Nifty 50 hovers near 23,200, resistance at 23,550.
• BankNifty breakout suggests short covering, potential rise to 24,000.
• Bajaj Finserv futures target ₹1,780 (~$21) after support at 1,690.
• Union Bank futures aim for ₹182 (~$2.2) with rounding‑bottom pattern.
• Divis Labs futures expected to reach ₹6,920 (~$83) on pharma strength.

Pulse Analysis

The Indian equity market opened on a cautious note after the United States launched air strikes against Iran, reigniting geopolitical risk that had briefly receded. Higher oil prices—Brent up about 1%—are a persistent headwind for India, the world’s third‑largest oil importer, as they can erode corporate margins and widen the trade deficit. Despite the broader Asian sell‑off, the Nifty 50 managed to stay near 23,200, buoyed by the Reserve Bank of India’s foreign‑exchange swap facility that eased banks’ overseas borrowing costs.

From a derivatives perspective, the market appears oversold. The India VIX slipped below 16, indicating waning fear, while foreign institutional investors increased net short positions to 275,000 contracts, suggesting they are positioning for a rebound. Technical analysis points to a short‑term support zone around the 23,000 strike for the June series, with a breakout above 23,550 potentially unlocking a run toward 24,000. Such dynamics set the stage for short‑covering rallies, especially in high‑liquidity futures contracts where open interest is shifting back to longs.

Jay Thakkar’s stock‑specific recommendations focus on three futures that exhibit strong technical bases and favorable options data. Bajaj Finserv futures are trading near ₹1,690‑1,705 (≈$20‑$21) with a target of ₹1,780 (~$21), supported by a surge in put buying at the 1,600‑1,700 strike. Union Bank futures show a rounding‑bottom pattern around ₹170‑172 (≈$2.05‑$2.07) and aim for ₹182 (~$2.20) after breaking past its max‑pain level. Divis Labs, a pharma play, trades near ₹6,790‑6,810 (≈$82‑$83) with a target of ₹6,920 (~$83), backed by rising open interest and aggressive put additions. Investors should monitor stop‑loss levels and remain mindful of the broader geopolitical backdrop, which could quickly shift market sentiment.