Market Expert Jay Thakkar Recommends Three F&O Trades as Nifty 50 Breaks Key Support Levels

Jay Thakkar, Vice President and Head of Derivatives and Quant Research at ICICI Securities, has identified three strategic futures and options trades as Indian equity markets face continued selling pressure. The recommendations come as the Nifty 50 has broken below critical support levels, signaling further downside potential.

Market Outlook and Technical Analysis

The Nifty 50 has decisively broken below the previous swing low of 25,473 levels, confirming the next leg down toward 25,000 points, which represents the next major support level. On the upside, resistance levels are positioned at 25,500 and 25,700, and until these levels are breached, the short-term trend remains bearish.

Broader market indices have also witnessed sharp corrections, with the Nifty Midcap Select breaking its critical 13,500 support level. The next downside targets for this index are positioned at 13,000 and 12,800 levels. Banking indices show similar weakness, with BankNifty below 59,500 having no major support until 58,500, while Nifty Financial Services has broken down from its critical support of 27,300 levels, targeting 26,800 on the downside.

Options Data Analysis

The options market structure provides additional insights into market sentiment and potential trading ranges:

The immediate trading range is expected between 25,000-25,500 points. While a bounce from 25,000 cannot be ruled out, a break below this level would target the next crucial support at 24,700.

Three F&O Trading Recommendations

Info Edge (Naukri) Futures - Sell Strategy

Info Edge has broken its trading range on the lower side with increased open interest, indicating fresh short positions. The stock previously experienced long unwinding and subsequently consolidated in a narrow range before breaking lower. Aggressive call additions from ₹1,300-1,400 strikes compared to puts have resulted in a bearish put-call ratio of 0.54. The short-term trend remains bearish until ₹1,340 levels are reclaimed on a closing basis.

Hindustan Zinc Futures - Buy Strategy

Hindustan Zinc has been forming higher tops and bottoms with increasing volumes and open interest, indicating long buildup. The stock faces no major resistance until ₹700 levels, where the highest call base is positioned. Strong put support exists from ₹660-640 strikes, providing downside protection. The ongoing bull run in silver prices adds positive momentum to the stock's outlook.

Fortis Healthcare Futures - Sell Strategy

Fortis Healthcare has broken crucial support levels after retracing 38.20% of its previous decline. The stock has violated its uptrend line support and witnessed significant call additions at the ₹900 strike, establishing short-term resistance. Put additions at ₹850 and ₹840 strikes indicate these levels will act as near-term support zones.

Risk Management and Market Strategy

Given the overall bearish trend across market segments, Thakkar recommends utilizing any market bounces as selling opportunities. The technical breakdown across multiple indices and individual stocks suggests continued pressure in the near term. Traders should maintain strict stop-loss levels and avoid aggressive long positions until clear trend reversal signals emerge above key resistance levels.