ACC to TVS Motor -Jay Thakkar suggests three stocks to buy for short-term in F&O segment

June 28, 2025 | Mumbai: In a market that continues to oscillate between global macroeconomic concerns and domestic growth cues, seasoned market analyst Jay Thakkar, Head of Alternate Research at Sharekhan by BNP Paribas, has identified three promising stocks in the Futures & Options (F&O) segment for short-term trading opportunities. The expert’s top picks include ACC, TVS Motor Company, and Alkem Laboratories—each selected based on strong technical indicators, recent price action, and potential to deliver swift upside.

Market Context: Volatility Meets Selective Optimism

The broader Indian equity markets have been range-bound over the past few sessions, with the Nifty 50 hovering around the 23,600 mark and the Bank Nifty struggling to find firm ground above 51,000. However, within the F&O space, traders continue to find selective opportunities driven by technical breakouts and sectoral momentum.

“Despite global uncertainties such as persistent inflation in the West and policy tightening by central banks, the Indian market continues to showcase relative strength, especially in sectors like auto, cement, and pharma,” said Thakkar in an interview with a business news channel on Friday.

1. ACC Ltd: Riding the Cement Sector’s Resilience

Recommendation: Buy
Target Price: ₹2,790
Stop Loss: ₹2,550
Time Frame: 7-10 trading sessions

Jay Thakkar has placed ACC Ltd, a key player in the cement space, on the radar as it breaks out from a consolidation phase. The stock recently formed a bullish continuation pattern on the daily charts, suggesting further upside.

“ACC has given a breakout above the ₹2,650 level with significant volumes. It’s forming higher highs and higher lows on the daily chart, indicating a strong upward trend. Given the improving demand in the infrastructure and housing sectors, we expect the stock to head towards ₹2,790 in the short term,” Thakkar said.

The cement sector has seen a renewed interest following government-backed infrastructure projects and expectations of demand revival in rural and semi-urban markets. Analysts are optimistic about higher operating margins for major cement companies due to stabilizing input costs and increased realizations.

2. TVS Motor Company: Gearing Up for a Fresh Rally

Recommendation: Buy
Target Price: ₹2,140
Stop Loss: ₹1,980
Time Frame: 5-8 trading sessions

Auto stocks, particularly two-wheeler majors, have outperformed in recent months, and TVS Motor is one of the key beneficiaries of this trend. The stock is trading near its all-time high, supported by robust volume growth, product innovation, and rising export contributions.

“TVS Motor has broken out of a flag pattern on the daily chart, which is a classic bullish continuation signal. With the stock consistently closing above its 20-day moving average, there’s a strong case for momentum-driven gains. We see short-term potential for the stock to move to ₹2,140,” noted Thakkar.

The auto sector is expected to benefit from improving rural demand, declining commodity costs, and increasing electric vehicle penetration—a domain where TVS has made significant progress with its iQube series.

3. Alkem Laboratories: Pharma Momentum in Play

Recommendation: Buy
Target Price: ₹5,050
Stop Loss: ₹4,760
Time Frame: 5-7 trading sessions

Thakkar’s third pick comes from the pharmaceutical space—Alkem Laboratories—which has recently witnessed strong buying interest following its quarterly results and positive commentary from the management.

“Alkem is witnessing a flag breakout on the daily charts and has also formed a higher top-higher bottom structure. The stock is supported by improving fundamentals, particularly in the domestic formulations business, and we believe it has the potential to touch ₹5,050 in the coming week,” he said.

The pharma sector has seen a gradual revival in investor sentiment due to a rebound in exports, normalization of USFDA inspections, and improving margins after a period of elevated raw material costs.

Analyst’s Strategy: Focus on Technicals with Sector Tailwinds

Thakkar emphasized that his recommendations are strictly for short-term positional trades in the F&O segment. “We are not looking at long-term investments here. These are technically driven trades supported by sectoral tailwinds. One must strictly adhere to stop-loss levels and risk management,” he added.

He also warned that high leverage in the F&O segment could amplify both profits and losses, and thus discipline is crucial. He recommends traders maintain a risk-to-reward ratio of at least 1:2 in such setups.

Investor Outlook: Tactical Trading Amid Broader Uncertainty

With the broader indices trading in a consolidative phase, the focus has shifted to stock-specific action in the F&O space. Technical breakouts, positive sector news flow, and earnings momentum are key triggers for short-term opportunities.

Retail investors with a high-risk appetite and the ability to monitor positions actively could consider these recommendations. However, for those with a conservative outlook or longer time horizon, a more diversified and fundamentally backed approach may be prudent.

“The idea is to capture quick 4-7% moves within a short span of time. Such trades require vigilance, timely exits, and disciplined execution,” concluded Thakkar.