Hi, I have a doubt. Most of the people trade in options by looking at index chart, say Bank nifty, nifty etc… Bank nifty track the stocks included in Bank nifty and it moves according to the stocks. So is it illogical to trade with nifty or bank nifty chart?
For eg, if I’m using super trend in ICICI bank, the super trend calculates the ICICI bank shares price and gives the signal since there is actual trades happening in that stocks. But how does an indicator or pivots sounds logical in Index? Because index is just replicating a group of stocks.
I’m sorry if my question is not clear