I have been in the market actively for last one year as a positional trader and started investing from 2010. Sofar I had done trading only once in FNO segment.
Since market condition is favorable for going long due to pre-budget rally, global scenario and I picked SBIN because of the good result and technically it has formed a bullish engulfing pattern in the weekly chart for target of 330 with SL of 303. Today I bought SBIN March fut at 311 when spot was at 308.5 which currently closed at 306.7. Unfortunately, I have not done the hedging today with put option. My question here is that do I need to buy 300PE because I feel that the price will not fall below this level. Or Do I need to hedge with 295/290PE.
You are welcome to clarify.
Since market condition is favorable for going long due to pre-budget rally, global scenario and I picked SBIN because of the good result and technically it has formed a bullish engulfing pattern in the weekly chart for target of 330 with SL of 303. Today I bought SBIN March fut at 311 when spot was at 308.5 which currently closed at 306.7. Unfortunately, I have not done the hedging today with put option. My question here is that do I need to buy 300PE because I feel that the price will not fall below this level. Or Do I need to hedge with 295/290PE.
You are welcome to clarify.
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