these are two very very big levels.
I like to hedge by selling calls if long and selling puts if short. Not a big fan of giving someone else premium/time value.
I am not a huge fan of hedging via options because I haven't backtested that idea.
I have however mathematically verified the utility of shorting weak stocks even as the market rallies.
So sectors which I think are shortable? anything that hasn't made a new high. IT? if you get a short setup, fmcg maybe some autos (but watchout for diwali sales)
To test my theory i'm shorting colgate. Its low beta, low risk, low reward.
nifty 5200 is the support 6000 is the res.
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