Let me take a stab at it. The first thing I would do is to anaylze the charts to get a good idea of support and resistance- here is the link, I prefer candle charts
http://www.icharts.in/charts.html
This stock has support at 50- and if you want to be more nuanced slightly above 55 is the first support. It is fairly obvious there is strong resistance at 70. First You need to have a trading plan ( I would suggest you write it down- as we are emotional people and we react!). Write down what you expect and what you feel you are risking versus the reward for this.
The stock has been sideway for a while- but for a 6 month view- it has an distinct uptrend ( I think there is some talk of a stake sale etc- and you need to monitor that)
Now let us be clear- in terms of delta/Position delta buying futures is pretty similar to buying stock- ie let us say market lot is 100 then you buy 1 IFCI lot- you have 100 deltas positive ( for your position)
Here is where you need to be careful- the selection of strike price. Your choice of 70 is good- since it is a serious resistance level. But you have to know that the delta will be less than 0.5- infact may be about 0,35 or so.
So if you sold 1 contract ( and let me assume 100 shares cover an option)- your PD ( position delta) will be 0.35 * 100- ie 35- which you are now short.
What I would like you to consider- and I am just meaning this as unpaid advice- so do what you need to do- try and match up the deltas- ie you are 100 deltas long but only 35 deltas short- consider selling 2 option contracts or perhaps 3. - that way you have bought 100 deltas and sold 100 deltas( approx)- effectively you are delta neutral? what does that mean- as long as you maintain this you will lock in the premium you got- and market movement will not affect what you made ( of course minus transaction costs- which I think you need to check !).
As long as you monitor your situation- and adjust the deltas to match up- you will not have to worry about the stock movement- of course what you want to happen is the stock just ends at 70!
Let us assume what if the stock tanks to 55- You basically should sell more calls against your position- and continue to match up the deltas till expiration. ( because the deltas of calls you sold already will go down as now they are more out of the money!) These sales will lower your breakeven so you can still continue if you still stick to your original belief.
This assumes you have adequate capital to re-adjust positions- and that is one of the keys for success- you just cannot wait and watch while things are happening to your position.
Delta neutral trading- is a good concept to learn, and you will have a good time doing it provided you stay within your limits. Again use stops- and restrict losses that you cannot afford - if your guess goes awry!
BTW- did you realize a secret- you could cut down on transaction costs by just selling a 65 Put- basically this is equivalent to what you are doing risk wise! I will explain that later.
You need to check IV's before you chose the strike price.
