An options trading strategy involves selling a Microsoft strangle post-earnings, targeting a 1.6% yield in 21 days (28% annualized). It leverages implied volatility crush and time decay, with defined downside support at $412.50 and upside resistance at $485, offering acceptable assignment scenarios.
Stock markets brace for a pivotal week as vote counting begins for five Indian state elections on May 4. Analysts say outcomes in West Bengal, Tamil Nadu, Kerala, Assam and Puducherry could influence market sentiment short-term. Meanwhile, elevated crude oil prices amid US-Iran tensions and Strait of Hormuz concerns remain the biggest macroeconomic factor for import-dependent India, with inflation risks and rupee pressure persisting.
Narendra Solanki of Anand Rathi Shares & Stock Brokers advises investors to separate durable compounders from one-off performers in Q4 earnings. He prefers two-wheelers and commercial vehicles over passenger vehicles, picks ICICI Bank and Axis Bank in private banking while watching HDFC for turnaround, and advocates a 3-5 year view on defence stocks. He remains positive on Bajaj Finance (22% loan growth, ROAs above 4%) and sees Jio IPO as key catalyst for Reliance.
Reliance Industries' March quarter results were pressured by its oil-to-chemicals segment, which saw EBITDA decline 4% YoY with margins falling to a nine-quarter low of 7.9% due to West Asia conflict disruptions. Digital and telecom (Jio Platforms) delivered 18% EBITDA growth, while retail posted 3% EBITDA growth. Telecom ARPU rose 4% to ₹214 with 5G subscribers now comprising 54.6% of 524.4 million users. Analysts have cut target price to ₹1,655. The company's 40 GWh GIGA factory is expected operational this year with commercial sales starting FY30.
Reliance Industries prepares for Q4 earnings and dividend announcement this week as its stock reels from a 15% correction, wiping Rs 3.37 lakh crore in market cap. Mukesh Ambani has lost his Asia's richest person crown to Gautam Adani, with net worth falling to $91 billion. FII holding has dropped to 18.67% from peak 28.3% in 2021. Analysts remain bullish with JPMorgan maintaining Overweight (target Rs 1,675) and JM Financial maintaining Buy (target Rs 1,730), citing strong digital business growth potential. Jio IPO filing expected in May with $180 billion valuation.
