The stock of TVS Motor Company (₹2,238.5) has been rallying over the past few weeks. On Friday, it surpassed a resistance at ₹2,170, which has opened the door for further appreciation.

The nearest resistance is ₹2,300 and we expect the stock to touch this level soon. But before that, we might see a minor price correction, possibly to ₹2,200. But note that a break below the support at ₹2,170 can turn the tide in favour of bears.

Nevertheless, traders can consider trades on the long side when there is a dip as the support holds true now, but adhere to the stop-loss strictly.

Strategy: Since May contracts are nearing expiry, traders can consider June series for creating fresh positions. Buy TVS Motor June futures (₹2,253.1) if its price moderates to ₹2,220. Place initial stop-loss at ₹2,180. After initiating the trade, when the contract moves above ₹2,270, revise the stop-loss up to ₹2,220. When the price hits ₹2,300, tighten the stop-loss further to ₹2,250. Book profits at ₹2,315.

Alternatively, one can go long on a call option. We recommend the 2300-strike June call option, which closed at ₹89.85 on Friday. Buy if its price declines to ₹70. Keep a stop-loss at ₹50. Post taking this trade when the option premium rises to ₹100, alter the stop-loss to ₹80. Liquidate this position when the price hits ₹115.

Note: The recommendations are based on technical analysis and F&O positions. There is a risk of loss in trading