Index management

Often I hear from the TV anchors that today’s move is purely index management .

Who does that and why.

Can you please share more contextual information on this? Maybe a transcript of the conversation or something like that.

Index management usually refers to managing the constituents of the index, which is a passive affair. It does not have much to do with day to day movement on the index.

When I was watching Business channels the news anchor in one channel told that today’s movement is pure index management.

On another day in other channel one analyst also said same.

One day in the recent months there was sharp fall in market for no news.

That day they told that " I checked with my sources and it was F&O action "

I forgot the date.

But this is the commentary listened to on channels.

hello trader,

Index management team and stock market operators do the same thing, they manipulate the prices of stocks or derivative products.

Stocks Market Operators = small group of individuals or private companies that manipulate the price of low liquidity stocks over a period of few weeks by creating inflated demand or supply. They operate in the cash market and keep sending SMS to your mobile advising you to buy that, buy this. They know what they do is wrong and so does it quietly and is afraid of the law. They are often considered as a nuisance to the stock market.

The so called new generation index management team does the same thing, except that they are not interested in small money by manipulating illiquid stocks. They are much interested in daily or hourly gains with continuous supply of funds both in the cash and derivative markets at the same time. They don’t send you SMS either. They are often considered as an asset for Stock Market liquidity in the wider aspect. They are considered as friends of the stock market.

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is it possible to identify those trades / trends ?

29 Mar 2017 - Today’s Case is clear Example of Index Management using ITC.

Nifty is being held above 9100 by Put Writers.

otherwise Nifty would have fallen by 50 points due to Supreme Court Ban on BSIII vehicles.

How can you quantify this?

If you look at OI of ITC Mar Future Yesterday there was 20% Jump around 3pm on 28/3/2017. Usually rollover happens and we see sqoff of current month future and buy next month future. Traders who wanted to go long don’t buy Mar Future since it is expiring in two days.

This also proved buy High Cost of carry of Current month future during week to expiry. Traders who wanted to Short Calls may buy Mar Future.

I was expecting ITC will fall based on this data.

I was watching ITC and Nifty whenever nifty falling ITC going up. And to restrict up move also it is being used. Why ITC is because it is having highest weightage in the Nifty.

If Psychological level of 9100 is breached it may lead to sell off in the market it will be biggest loss to Put writers because panic spreads faster than greed.

When I have seen Nifty 9100 call options premium was around 1pm it was about 50.0, Nifty was at 9130. Almost Rupees 20 premium shows Nifty going towards 9150 on expiry.

due to Underlying bullish strength Nifty is trying to Fly is being controlled using ITC.

Despite Negative news market trying to go up due to strong fund flow.

When Nifty approaching 9100 ITC goes up and When Nifty reaching 9150 ITC falling till that BSIII news.

After that most stocks went short covering.

To understand that first we should know why there is more volatility in Expiry week. How and Why stocks move in sinusoidal fashion in that week

BEL was moving between S1 and S2 in sinusoidal wave form. Same technique used to Index Management.

Disclaimer :slight_smile:
I shorted ITC Mar Future on 28/03/2017. Sqoff for no loss at 9.15am on 29/032017.

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How punters multiply capital by 50 times in ten minutes?

Look at BANKNIFTY MAR 21600CE CHART.

at 14:54 Low is 0.5

At 15:00. High. 32.0.

64 times in ten minutes.

Enjoy Your profits :joy:

Sqoff before market closes else you will be shocked with HUGE STT.

How Huge?

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Today 6 April 2017.

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