I’m holding October expiry 150-CE on Ashok Leyland bought for ₹2. Can I hold the contract for a target of ₹4? – Harith B K
Ashok Leyland (₹139.79): The stock has been in an uptrend since April. The latest leg of rally began in mid-August on the back of ₹115.
But over the past few sessions, the scrip has been consolidating between ₹138 and ₹144. Nevertheless, the trend remains bullish and the price action hints at a resumption in uptrend soon, which can potentially lift the stock to ₹150-152 price region.
If the stock reaches ₹150-152 price band before expiry, the premium of 150-call option can rise between ₹3 and ₹4 depending on how quickly these levels are attained.
Given the aforesaid factors, you can hold 150-call long. The premium is likely to rise from the current level of ₹0.95 to ₹3-4 range before October expiry. That said, accounting for uncertainty, rather than setting ₹4 as target, we suggest exiting the trade at ₹3.
In case the stock decisively breaches the support at ₹138, immediately exit the 150-call at the prevailing price.
Shall I buy Godrej Consumer Products October contract at the current market price? – Palani Shanmugam
Godrej Consumer Products (₹1,149): After oscillating in the broad ₹1,160-1,300 range since April, the stock of Godrej Consumer Products breached the support at ₹1,160 last week. This is a bearish signal.
While there might be a corrective rally from the current level, it is likely to be capped between ₹1,200 and ₹1,220. Note that this minor uptick can also happen after some more decline from the current level.
Overall, the breach of a support indicates weakness and there are uncertainties with respect to the corrective rally. Therefore, we suggest staying out.
When the stock rises to ₹1,200-1,220 resistance band, you may consider initiating a fresh short position. Target and stop-loss can be ₹1,100 and ₹1,260 respectively.
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Published on October 4, 2025
