Indian benchmark indices staged a strong recovery in early trade on Wednesday, with the BSE Sensex surging 553 points to 77,603.57 and the NSE Nifty 50 climbing 148.15 points to 24,198.40. According to reports from LiveMint, the rebound was aided by banking stocks and positive US inflation data that boosted hopes of a less hawkish Federal Reserve approach. However, investor sentiment remained cautious amid escalating geopolitical tensions, with the US and Iran continuing to exchange strikes while tensions over the Strait of Hormuz kept markets on edge. Brent crude rose 1.4% to around $86 per barrel after US President Donald Trump reinstated a naval blockade on Iranian ports, prompting retaliatory strikes by Tehran on US infrastructure.
As reported by Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, the Nifty 50 closed in negative territory during the weekly expiry session but managed to hold above the 24,000 level, which had the highest put base. The India VIX has started moving higher again but remains within the 11-16 tolerance band, meaning downside risk is limited until it closes above 16. The FII index short positions remain elevated at 2.55 lakh contracts as of July 13, 2026, limiting upside potential in the India VIX. According to the analysis, markets are likely to trade within a short-term range of 24,500-23,500 levels, with the BankNifty consolidating within the 58,500-57,000 range. The Nifty Midcap Select has formed a breakout with long buildup, remaining in an uptrend as long as the 14,300 level is not broken.
Jay Thakkar of ICICI Securities recommends three stocks for near-term trading in the F&O segment. RBL Bank futures are suggested for buying in the range of 375-378 with a stop loss below 365 and targets of 390/400. The analysis notes that RBL Bank has been trending higher while holding its 20-day mean, with significant put additions at 350-380 strikes and call base directly at 400 levels. PG Electroplast futures are recommended for buying in the range of 590-605 with a stop loss below 575 and targets of 630-645. The stock has provided a breakout from multiple swing resistances with clear long additions, showing reversal from down to up momentum. Mankind Pharma futures are suggested for buying in the range of 2,525-2,550 with a stop loss below 2,460 and targets of 2,650 and 2,725. The stock has witnessed good long additions in the past and is now consolidating with a short-term range due to profit booking, with a breakout expected to lead strong momentum.
According to the technical analysis, the Nifty Midcap Select has formed a breakout with long buildup, remaining in an uptrend as long as the 14,300 level is not broken. The Nifty Pharma Index has been trending higher with most stocks trading with positive bias, including Mankind Pharma which has witnessed good long additions in the past. However, cooling US inflation data, which is generally positive for emerging markets including India, has reduced pressure on the US dollar and lowered the likelihood of aggressive Fed tightening. The analysis suggests that global risk sentiment found support from weaker-than-expected US inflation data, which reinforced expectations that the Federal Reserve may refrain from raising interest rates in the near term. The Nifty Consumer Durable Index has also shown a decent comeback, providing short-term support for PG Electroplast.
