I purchased TMPV 400-call of June series for a premium of ₹9.50. Kindly suggest the outlook – Prasad 

TMPV (₹375.90): The stock of Tata Motors Passenger Vehicles (TMPV) has been in an uptrend since early April. The rally began on the back of the support at ₹295. But after hitting a high of ₹408 on May 29, the price moderated. On Thursday it closed at ₹375.90.

Nevertheless, the uptrend is not broken. The stock is now hovering around a support at ₹375 where the 21-day moving average coincides. The price band between ₹370-375 is a good base.

So, there is a good chance for the stock to resume the rally. Once it starts moving up, we can see an uptick to ₹400.

However, assuming that the stock appreciates to ₹400 over the next couple of weeks, the premium of June 400-call (currently at ₹2.25) can rise to around ₹6, which is less than your entry price. If the rally is quicker, the premium can go higher and vice-versa. Or the stock has to extend the rally beyond ₹400 to see a meaningful increase in premium.

Given the prevailing conditions, our suggestion would be to exit the trade when the premium rises to ₹6. After exiting, in case the stock breaks out of ₹400, you can consider buying call option again but of July series.

Send your queries to derivatives@thehindu.co.in

Published on June 12, 2026