Tata Steel to BEL: Jay Thakkar suggests three stocks to buy or sell for short-term in F&O segment

By Admin

28 Jan, 2026

Market Overview: Sensex & Nifty 50 Set for a Positive Start
The domestic equity markets are expected to open higher on Wednesday, supported by positive global cues and optimism surrounding the India–EU trade agreement. Both Sensex and Nifty 50 ended Tuesday’s session on a strong note, led by buying interest in banking and metal stocks. However, market participants remain cautious due to continued foreign capital outflows and slower corporate earnings growth, which could cap sharp upside.

Asian markets showed mixed trends, while US markets mostly closed higher, with the S&P 500 touching an intraday all-time high. Gift Nifty was hovering near the 25,445 mark, trading at a premium of around 62 points over Nifty futures, indicating a firm opening for Indian benchmarks.

On Tuesday, the Sensex rose 319.78 points (0.39%) to close at 81,857.48, while the Nifty 50 gained 126.75 points (0.51%) to settle at 25,175.40, despite notable intraday volatility.

Market Outlook by Jay Thakkar, ICICI Securities
According to Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, the Nifty 50 has bounced back from its previous swing support and managed to close above the 25,150 level. This is a positive short-term signal, especially as banking and financial stocks, which carry significant weightage in the index, are providing support.

The Nifty Metal Index has continued its upward momentum with over 3% gains in recent sessions, along with sustained strength in the PSU Bank Index. No major reversal signals are visible in these sectors so far.

India VIX opened with a sharp gap-up of over 9%, touched an intraday high of 16.06, and eventually closed near 14.22. Jay Thakkar believes volatility could rise further until the Union Budget, with 12 acting as a short-term base.

From an options perspective, 25,000 remains the highest put base while 25,500 holds the highest call base. This suggests a near-term trading range of 25,000–25,500 for the upcoming weekly expiry. As long as Nifty holds above 24,900 on a closing basis, short covering could support recovery, although volatility is likely to persist.

Stocks to Buy in the Near Term – F&O Picks

Tata Steel February Futures
Buy in the range of ₹195–190
Stop loss: ₹185
Targets: ₹205 / ₹210

Steel stocks have outperformed in recent sessions, supported by long rollovers within the Metal Index. Tata Steel has shown consistent higher highs and higher lows, indicating a short-term uptrend. With the highest call base at 190 and the stock closing above it, call unwinding could further support upside momentum.

Union Bank February Futures
Buy in the range of ₹175–177
Stop loss: ₹170
Targets: ₹182 / ₹185

Union Bank of India has been consolidating for the past few sessions, and a breakout in the February series looks likely. Long build-up over recent months and the outperformance of the PSU Bank Index strengthen the positive bias. Options data indicates heavy call writing at 180, and unwinding above this level could fuel further upside, while 175–173 acts as a strong support zone.

Bharat Electronics Ltd (BEL) February Futures
Buy in the range of ₹415–420
Stop loss: ₹398
Targets: ₹450 / ₹465

Bharat Electronics Limited has been consolidating in a broad range of 370–425, with the lower end gradually shifting higher. The absence of major long unwinding and signs of fresh long build-up indicate improving strength. A breakout above 420, which also holds the highest call base, could trigger significant call unwinding and accelerate upside momentum.

Conclusion
Overall market sentiment remains constructive, supported by global cues, sectoral strength in metals and banking, and technical stability in the Nifty 50. However, traders should remain cautious amid rising volatility and external risks. The short-term F&O strategies suggested by Jay Thakkar focus on stocks showing strong technical setups and supportive derivatives data.

Disclaimer
The views and recommendations expressed above are those of individual analysts or broking firms and do not represent the views of Mint. Investors are advised to consult certified financial advisors before taking any investment decisions, as market conditions are subject to rapid change and individual risk profiles may vary.