Should You Buy the IRCTC Call Option Ahead of Q2 Results?
About the IRCTC Setup
The stock of Indian Railway Catering and Tourism Corporation (IRCTC) is currently trading near a crucial support level, showing consolidation before its Q2 results announcement on November 12. Support is placed at ₹691 and ₹670, while resistance lies at ₹721 and ₹756. The short-term outlook remains positive within a narrow range, favoring option-based setups.
IRCTC November Futures closed at ₹701.40, marginally below the spot price of ₹704.15, indicating mild backwardation. The open interest surged from 14.54 lakh to 1.47 crore shares, showing strong trader participation. Option activity suggests a near-term range of ₹700–₹800.
F&O Strategy: Buy IRCTC 710 Call Option
| Parameter | Details |
|---|---|
| Current Spot Price | ₹704.15 |
| Support Levels | ₹691, ₹670 |
| Resistance Levels | ₹721, ₹756 |
| Call Option Strike | ₹710 CE |
| Premium | ₹10.95 |
| Lot Size | 875 shares |
| Total Cost | ₹9,581.25 |
| Stop-Loss | ₹6.5 (Revised to ₹10) |
| Target Premium | ₹17.5–₹18 |
This strategy works best for traders with moderate risk appetite. The maximum loss is limited to the premium paid, while potential profit increases if IRCTC rises sharply above ₹710 during the series.
For similar structured F&O setups, see Nifty Option Tip
Technical Outlook
- Momentum: Weak but stabilizing near ₹700; a rebound could trigger upside.
- OI Trend: Strong build-up indicates active long positions in futures and calls.
- Volatility: Expected ahead of results; intraday spikes possible.
Traders should monitor opening cues. If IRCTC gaps up beyond ₹710–₹712, avoid fresh longs as risk-reward worsens. On the downside, a sustained close below ₹690 invalidates bullish bias.
Strengths & Weaknesses
Strengths
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Weaknesses
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Despite recent corrections, IRCTC remains a fundamentally strong PSU with a well-diversified service offering in catering, tourism, and e-ticketing platforms.
Opportunities & Threats
Opportunities
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Threats
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Valuation & Investment View
- Short-term: Buy IRCTC 710-call for quick premium gains, maintain stop-loss discipline.
- Medium-term: Range-bound movement between ₹670–₹760 expected.
- Long-term: Strong fundamentals but wait for better valuation levels for equity entry.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, advises that disciplined traders can deploy the 710-call strategy for short-term gains. Those less comfortable with F&O volatility should remain on sidelines until clarity post-results. Explore more F&O trading insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on IRCTC Derivatives
- Is IRCTC 710 Call Option a Good Buy Before Results?
- What Are Key Levels for IRCTC in November Futures?
- How to Manage Stop-Loss for IRCTC Option Strategies?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
