[Nitin Bhatia]

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…

[Nitin Bhatia]

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.

[Nitin Bhatia]

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.

[Nitin Bhatia]

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.

[Nitin Bhatia]

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

[Nitin Bhatia]

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

[Author]

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