Tagged: Portfolio re shuffle
May 30, 2019 at 8:51 PM #134588pavan.goyalParticipant
In Wednesday’s (26th May) live stream you mentioned that smart money are buying in Index future to maintain the pressure when they have to exit from heavy weight stock.
My question here is how buying in Nifty futures can help to maintain the stock price. Increase in nifty future price can not move the NIFTY however reverse is true.
I would appreciate if you could elaborate little more on this.
May 31, 2019 at 1:39 AM #135530SANTANUMAJI1994Participant
The co relation between index and heavy weight stocks in index is very strong(because its have max wattage in index)..When market up those heavy weight stock up and vice versa..So if fii buy index future and sell those stocks then market will stable..most of the time cash price is decided from future price..so if market is stable then those heavy wight stock price also stable.. It helps/give big players a exit rout without effecting market…
for more info please watch Nitin Sir’s Index Management videos
Hope this info can help you to understand the logic
May 31, 2019 at 1:48 AM #135532
As nitin sir said they ar buying index future for offloading their postion, so now how can we know that wich postion they are offloading, stock, stock future nd postion of option?
June 2, 2019 at 11:07 AM #137682
I explained in my Index Management Live Streaming.
May 31, 2019 at 1:37 PM #135576stories shubhamParticipant
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.
June 2, 2019 at 11:10 AM #137684
Reliance will only contribute its part in Nifty. You should only check where the big players are focusing to drive the index..They will overshadow rest all. If all others are contributing -70 and Reliance is contributing +5 then index will be down by -65
June 2, 2019 at 2:17 AM #137634SANTANUMAJI1994Participant
LOOK AT THE HDFCBANK CHART. FOCUS 23MAY AND 31MAY..TURNOVER IS VERY HIGH AND THERE IS A SHARP PRICE CORRECTION ON THAT DAY..IF THEY BUY THEN PRICE MUST GO UP ON THAT DAY..SMART MONEY IS OFFLOADING AS WELL AS CREATING SPECULATING POSITION IN THIS STOCK..
NITIN SIR ALREADY PUBLISHED MANY VIDEOS WHERE HE SAID ABOUT THE IMPORTANCE OF TRADED VALUE/DELIVERY % /VOLUME BAR/PRICE MOVEMENT AND OPEN INTEREST DATA..PLEASE WATCH ALL THOSE VIDEOS..
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