Info Edge, a leading player in the online recruitment space, has garnered attention from market analysts for its strong growth prospects. Prabhudas Lilladher’s analyst, Shilpa Raut, has provided insights into a potential trading opportunity that investors may consider. This analysis aims to highlight the recommended options strategy, potential returns, and essential risk management practices that can optimize trading outcomes for investors.
Recommended Options Strategy
Shilpa Raut suggests considering a call option with a strike price of 7500, set to expire in March. Prabhudas Lilladher advocates purchasing this call option at the price of ₹313.90. This strategy is predicated on the belief that Info Edge’s stock will experience upward momentum, making this an attractive entry point for investors looking to capitalize on positive price movements.
Potential Returns
If the stock performs as expected, targets between ₹395 to ₹430 can be anticipated. This price range suggests a significant potential upside from the initial purchase price of the call option.
| Entry Price (₹) | Potential Target (₹) | Possible Return (%) |
|---|---|---|
| 313.90 | 395 | 26.00% |
| 313.90 | 430 | 37.00% |
Risk Management Strategy
To safeguard against potential losses, it is crucial to implement a stop-loss order. Shilpa Raut advises setting a stop-loss at ₹170 to manage risk effectively. This measure can protect investors from excessive drawdowns in the event that the stock does not perform as anticipated.
Conclusion
In conclusion, the analysis provided by Prabhudas Lilladher regarding Info Edge offers potential trading opportunities through the use of options. The recommended call option at ₹313.90, with anticipated targets ranging between ₹395 and ₹430, presents a promising venture for those looking to engage with this stock. However, diligent implementation of a stop-loss strategy at ₹170 is essential to mitigate risks. As always, investors should conduct thorough research and consider their risk tolerance before entering any trades.
