TO NITIN SIR: Suppose that in NIFTY50, RELIANCE weightage is 10%. IF we keep all other stocks at the same price and move reliance up by 1% using its stock futures only, NIFTY will move up by 10 points. Obviously, the price of NIFTY FUT will also increase whether we buy futures or not. (I THINK SO)
Think of a reverse scenario, IF WE SELL NIFTY FUTURES IN SIGNIFICANT QUANTITY, AND SOMEHOW KEEP OTHER 49 STOCKS AT SAME PRICE, WILL RELIANCE GO DOWN EVEN IF WE “DONT” SELL IT IN EITHER CASH OR FUTURES?
Last live streaming I didn’t understand this so please answer.
Warm Regards.