InvestorQ : I hv buy TCS future @2280 guide me
Mukund Shah made post

I hv buy TCS future @2280 guide me

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Dhwani Mehta answered.
1 year ago

There are some information pieces that are missing, so I am making certain assumptions in this case. I am assuming that you have these TCS futures in August contracts and that you have one lot. I also assume that you have not put any stop loss. The futures are quoting at Rs.2252. That is a loss of nearly Rs.30 including trading costs and you are already sitting on an MTM loss of Rs.7500. Are you prepared for further MTM losses? If not then please cut the position right away.

The results of TCS in the June quarter were slightly below market expectations and that could weigh on the stock. However, there is some defensive buying seen in IT stocks as the overall market is becoming more uncertain. There are two ways you can look at it. Either you can keep a stop loss a little lower and cut positions. Or you can just convert this long future into a call option so that your maximum loss is fixed. Take a call based on what suits you best.