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.

Market Outlook by Jay Thakkar, Vice President & Head of Derivatives and Quant Research, ICICI Securities

Nifty 50

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.

Stocks To Buy in the near-term – Jay Thakkar

Jay Thakkar of ICICI Securities recommends Adani Energy Solutions Futures, Colgate Palmolive (India) Futures, and Varun Beverages Futures (VBL).

Buy Adani Energy Solutions Futures in the range of ₹905-895 Stop Loss: ₹875 Targets: ₹945 to ₹965

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.

Buy Colgate Palmolive Futures in the range of ₹2,465 to 2,435 Stop Loss: ₹2,380 Targets: ₹2,600 and ₹2,700

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.

Buy Varun Beverages Futures in the range ₹470-465 Stop Loss: ₹455 Targets: ₹485 to ₹500

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.