After headline Indian equity indices made a swift recovery last week and recouped most of the losses made amid US President Donald Trump’s tariff moves, Shivangi Sarda – Manager – Research Analyst- Motilal Oswal Financial Services underscored spike in the volatility index (VIX) at higher levels.
Furthermore, she also stressed on the sector-specific action that is quite sharp.
As we write, NSE’s Nifty50 in Friday’s session closed higher by 1.92 per cent or 429.4 points at 22,828.55, while the BSE’s 30-share Sensex index closed with gains of 1.77 per cent or 1,310 points higher at 75,157.26. Broader indices also showed resilience and ended higher by up to 3 per cent.
Options strategy for April 15, 2025
So, looking at the current market mood, here are two stock recommendations by Sarda:
Marico: Giving her buy on the 720 call option of Marico for Rs 16 target and Rs 7 stop loss, Sarda says that the sector is currently working as a safe-bet and the analyst remains bullish on the consumption space as a whole. For the entire week, there has been seen a long build-up in the stock.
Long build-up signifies a position in the market where traders aggressively increase their long bets in the stock. This is characterized by rising open interest and volumes, suggesting that more traders are buying with the expectation of further increases.
Bajaj Finance: The analyst held that there is seen good short covering in the stock with a long build-up. Further she added that there has been seen a good upwinding in the Rs 9000 call option of Bajaj Finance.
So, the expert recommends to buy it keeping a stop loss of Rs 130 and a target of Rs 220.
What are options?
Options are a type of derivative, signifying that their value is derived from the underlying. The contracts gives holder the right, but not the obligation, to buy or sell an underlying asset at a pre-determined or strike price within a specified period.
