\documentclass[varwidth=true, border=2pt]{standalone}
\usepackage{pgfplots}
\usepackage{tikz}
\begin{document}
\begin{tikzpicture}
\begin{axis}[
legend pos=south west,
axis x line=middle,
axis y line=middle,
grid = major,
grid style={dashed, gray!30},
xmin=-1.5,
xmax= 1.5,
axis background/.style={fill=white},
xlabel=$x$,
ylabel=$y$,
tick align=outside,
minor tick num=-3,
enlargelimits=true,
tension=0.08]
\addplot[domain=-1.5:1.5, red, thick,samples=50] {x*x};
\draw[blue, thick] \pgfextra{
\pgfpathellipse{\pgfplotspointaxisxy{0}{1}}
{\pgfplotspointaxisdirectionxy{0.87}{0}}
{\pgfplotspointaxisdirectionxy{0}{0.87}}
};
\end{axis}
\end{tikzpicture}
\end{document}