Dear Team,
We know that the futures and options move based on the underlying asset. In case of NIFTY FUT, NIFTY 50 is underlying for which there are 50 stocks are underlying.
We trade using futures or options to represent our view. I heard from many videos and read in articles that there are at times stop loss hunting done by bug institutions. What I am not able to understand is that, if the index reaches one specific support or resistance, how can an institution do that to the options or futures that are being traded, unless they do the modification of its underlying, inn our case, to these 50 stocks. Please clarify.