Does it really make sense to rely on traditional support/resistance levels and indicators while scalping index instruments like Nifty 50?

[BB789]

You’re seeing it backwards. Theoretically, derivatives “derive” their price from cash market. Practically though, derivative volume is 400x that of cash volume³ and in a highly rigged environment, derivatives move before cash ^{1 2}. So, stocks aren’t bought at 26000 because the stocks are cheap, but because whales decided to move the index from 26k - that’s what you call price action.

@Patel_6

a level like 26,000 may act as support multiple times for completely different reasons each time , such as buying in a few heavy-weight constituents on one occasion and buying in different constituents on another

Only one reason. if it acts as a support, it’s because the whales are purchasing stocks to move the index.

@Jason_Castelino

Spot plays catching up with Fno.
I can always tell which way spot is moving in next 1 min. But that’s of no use because options have already priced that in a min back.
In theory, options move based on underlying. But practically 9 out of 10 times, options move first and then the spot.

Now this is just my observation based on my market experience.