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    • May 5, 2019 at 2:41 PM #90594
      Nitin Bhatia
      Keymaster

        Q1.
        If IV increase and OI increase ?
        IV increase OI decrease ?
        IV decrease OI decrease ?
        IV decrease OI increase ?
        Q2.
        When short covering happen in nifty why spot price changes drastically
        Eg. 15lak decrease in oi why spot price changes ..
        When short covering happen what is impact on nifty 50 stocks like hdfc bank , reliance , hdfc ,tcs …. Etc how they move up or down

        When Reliance moves up or down it is ok nifty moves but when short covering happen in nifty option why nifty 50 stocks like reliance moves….

        Please explain…

      • May 5, 2019 at 5:34 PM #91410
        Nitin Bhatia
        Keymaster

          1. You cannot conclude just based on OI and IV. Also check the change in premium
          2. HDFC bank and Reliance have highest weightage in Nifty. Option is derivative product. It tracks the movement of underlying asset.

        • May 6, 2019 at 11:24 AM #92649
          Nitin Bhatia
          Keymaster

            Sir & Atulr,

            Correct me if I am wrong,

            Big players or FII start selling in high weightage shares (which they had speculative position earlier) to move nifty down >>> & they can do short covering.

          • May 7, 2019 at 10:15 AM #94118
            Nitin Bhatia
            Keymaster

              If speculative position was long then they will sell and market will move down.

              If speculative position was short then they will buy and market will move up. it is short covering.

            • May 7, 2019 at 12:55 PM #94474
              Nitin Bhatia
              Keymaster

                Guru ji

                Iska matlab market mai short possible built ho rhi hai to short covering v hogi and market going to move up next few days if I wrote something worng plz correct me guru ji

                • May 8, 2019 at 10:24 AM #97752
                  Nitin Bhatia
                  Keymaster

                    Yes…But it also depends on retail sentiments…If the retail sentiments is depressed then you can expect only small rally.

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