I bought 7000-CE (June) on ABB at ₹110. What is the outlook of the stock? Shall I hold the option or exit?

Varun Dev

ABB (₹6,689.50): The stock, which was on a decline since the final week of April, was consolidating between ₹6,215 and ₹6,450 recently. But on last Wednesday, the stock broke out of ₹6,450.

The broader trend is bullish and the chart now indicates that the stock has resumed the uptrend after witnessing a corrective decline recently. Therefore, the likelihood of a rally from the current level is high. In the near term, we expect the price to hit ₹7,200.

When the stock price goes up to ₹7,200, the premium of 7000-call of June expiry, now at ₹131.65, can rally to ₹230-250 range depending on how quickly the rise happens.

Therefore, you can consider holding the option for a target of ₹230.

That said, in case the stock declines and slips below ₹6,450, the bears could regain traction, potentially leading to a deeper decline. Hence, exit 7000-call at the ongoing price when the stock breaches the support at ₹6,450.

Delhivery has broken the support at ₹450. Do you suggest buying put options?

Saran Raj

Delhivery (₹447.60): The stock has been in a downtrend over the past three weeks. On Friday, it broke down below a key support at ₹450, which has been holding well since early April.

But there is another minor support at ₹440 and only a clear breach of this increases the odd for a fresh leg of a fall. Notable support below ₹440 is at ₹425 followed by ₹410.

If you have higher risk tolerance, you can buy put now. But if you want to reduce the risk and go in with better certainty, you can wait for the stock to fall below ₹440.

With respect to strike and expiry, we suggest buying June ₹400-strike put. Target and stop-loss can be based on the underlying. That is, exit the put (book profit) at the prevailing price when the stock price falls to ₹430. But if the stock recovers and surpasses ₹455, liquidate the put (exit with loss) at the going price.

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Published on May 23, 2026