Stock Market Today: Jay Thakkar Recommends Cipla, Bajaj Finserv

Sophia
Jul 26
2 min read

Indian Market Falls for Second Straight Session Amid Global Weakness, FII Selling

The Indian stock market continued its downward trend on Friday, July 26, marking its second consecutive session of losses. The BSE Sensex fell sharply by 721.08 points (0.88%) to close at 81,463.09, while the Nifty 50 declined 225.10 points (0.90%) to settle at 24,837, both hitting monthly lows.

The sharp decline was attributed to broad-based selling in financials, IT, and oil & gas sectors, along with sustained foreign institutional investor (FII) outflows. Weak cues from Asian and European markets further dampened investor sentiment.

Key Market Drivers:

FII selling continues to pressure Indian equities.
Global uncertainties around potential tariff moves by the Trump administration are impacting trade-sensitive sectors.
Investors remain cautious ahead of major Q1 FY26 earnings results, with a focus on margin guidance and sectoral commentary.
Optimism persists around a potential India–US trade agreement, which could boost investor confidence if finalized.

Jay Thakkar’s Market Outlook: Nifty Below 25,000, Trend Remains Negative

Jay Thakkar, Vice President & Head of Derivatives and Quantitative Research at ICICI Securities, shared a bearish short-term view for the broader market, highlighting technical weaknesses in key indices.

Nifty 50 Outlook:

Nifty has closed below 25,000, breaking its previous range on the downside.
This level now acts as a strong resistance in the short term.
Unless Nifty reclaims 25,000, the short-term trend remains negative.

Bank Nifty Outlook:

The index is consolidating between 56,000–57,000 levels.
A breakout is yet to occur, keeping direction uncertain.
Both Implied Volatility (IV) and IV Percentile (IVP) are rising, indicating possible heightened market volatility in the days ahead.

Jay Thakkar’s Top 2 Short-Term F&O Stock Picks

For traders looking for opportunities in the derivatives segment, Jay Thakkar recommends the following Futures & Options (F&O) stocks to buy or sell based on short-term technical setups:

1. Cipla – Buy

Sector: Pharmaceuticals
Reason: Strong support zone, resilient chart structure
Outlook: Likely to outperform in a defensive sector amid overall market volatility
Strategy: Buy on dips with a short-term target and tight stop loss

2. Bajaj Finserv – Sell

Sector: Financial Services
Reason: Bearish technical breakdown, weak sectoral trend
Outlook: Continued downside possible in near term
Strategy: Short in F&O with proper risk management

What Traders Should Watch Next Week

With Q1 FY26 earnings season in full swing, market participants should watch for:

Earnings surprises or disappointments from key index-heavyweights
Commentary on input cost pressures, profit margins, and sector growth
FII activity and currency movement
Any update on the India–US trade deal which could be a market mover

Conclusion: Trade with Caution as Market Volatility Rises

The Indian stock market is currently facing short-term headwinds, with the Nifty and Bank Nifty trading below key levels. Jay Thakkar’s expert analysis suggests a bearish bias in the near term unless key resistance levels are breached. However, strategic plays in the F&O segment like Cipla and Bajaj Finserv offer traders the opportunity to benefit from sector-specific trends.