I bought one lot of Eicher Motors 7000-call option of October expiry. Buy price is ₹127 and my target is ₹160. Should I hold onto this strategy or exit with the loss? – Anish Das
Eicher Motors (₹6,965): The stock has been in a long-term uptrend. The recent rally began in early August on the back of the support at ₹5,375. After hitting a life-time high of ₹7,122.50 in September, the uptrend lost momentum.
Although there was no bearish reversal in trend, the stock was largely in a consolidation phase. The sideways correction post a strong rally indicates that the bulls have not really given up.
The price action shows that the stock has formed supports at ₹6,860 and ₹6,750. Until these levels hold, the uptrend will be intact.
As the overall bullish inclination remains and that there are support levels nearby, we expect the stock to resume the rally soon. Such an upswing can lift the price to ₹7,200 in the near term.
Considering the aforesaid factors, you can hold on to the long position on the 7000-call option, which closed at ₹109.65.
Assuming the stock can rally to ₹7,200 in the near term, there is potential for the 7000-call option’s premium to rise to ₹200. So, your target of ₹160 is very much reasonable.
That being said, prolonged consolidation or even a minor correction in the stock price can lead to a drop in premium, particularly as we move near expiry of October contracts, which raises the need for a stop-loss. We suggest placing a stop-loss at ₹50.
Fin Nifty futures has a resistance at 27,000. Do you suggest shorting now? – Yugesh, Thane
Fin Nifty futures (26,965.60): The contract has a minor hurdle at 27,000. However, note that it has just broken out of 26,700, which will henceforth act as a support. Also, the recent trend has been bullish.
Given the aforementioned factors, the likelihood of a rally is high and so, we suggest avoiding fresh short positions. Also, for Fin Nifty futures, the liquidity is not as good as in Nifty futures or Nifty Bank futures.
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Published on October 11, 2025
