Bankex was at around 57920 levels around between 3.00 to 3.29. In last candle, it made high of 58069.97, but adjusted closing price came at 57950, where it was above 57950 for only 1 minute and that too in last minute.
Bankex 57900 CE jumped from 17 to 49 in the last candle. Same movement happened with all ITM CE and PEs. Is there any error or really this happened. Can anyone crosscheck
probably stock intraday squareoff being triggered late or someone decided to buy a heavyweight in last min.
hi @siva , is there any indicator that retail can use to get this settlement price of index? is it WMA or VWMA? is method used by NSE/BSE to calculate this available to public?
if a retail trader cant get this using indicators upon price/volume values available to her, probably exchanges should publish this info as additional parameter for corresponding index.
So far Banks/institutions are easily rigging this in the last moments trapping retailers with good liquidity available on almost every expiry.
i checked bankex consitutents and none of the stocks had a huge moment in the last 1 min, then why the main index had shown 150+ movement and that too closing at price which it had achieved in last 1 min. Surely, something fishy had happened.
Don’t think anything is available for retail for free, it is very tough even for us to provide, we have been asking exchanges to provide them from their end as this is a must for traders, hope something will happen from their end.
It is volume weighted average.
today it happened again with bankex. BSE should take responsibility and mitigate the divergences in the last minute. This doesnt happen in NSE indice expiries that often. BSE is definitely doing something wrong. How can it be that different in the last minute (even I checked top 5 constituent banks and 2 are up 3 down in that last minute, but bankex went up by massive 35 points).
I will check and get back on this.
Technically nothing is wrong here, there is some concept called Banging the close or marking the close, " Traders who engage in Banging the Close typically aim to influence the closing price of an asset for various reasons, including profit maximization or creating misleading impressions in the market. This practice can involve large buy or sell orders that are intended to move the market in a specific direction just before the closing bell"
Read more here.
In simple terms some big traders are placing big orders in underlying constituents to mark the close at the close of markets, we as traders should be aware of these.
Banging the close is considered to be unethical trading practice and punishable offence , but who is going to take this up with the BSE or the regulator ? Manipulators having a free run in the indian markests …
When has BSE or NSE been ethical. Had it been ethical, the retail traders who are losing will not be in the 90’s percent.
Can be done when weighted average is being calculated for last 30 minutes? From 15:08 till the last minute, Bankex was below 49150 but just one single candle can cause the weighted average to be 49150. Till 3:29 weighted average was 49107. In 1 minute the weighted average can go up by 40-45 points disregarding previous 29 minutes? And that 1 minute its not like Bankex went up 500 points that would skew the other 29 minutes of data.
everything is ok. There may be theories related to this. But the main point is that index does not move on its own, it moves when its constituents moves. On that day, in last 2 minutes, none of the major constituents showed a huge move still 150 points movement is Bankex? Suppose, if HDFC Bank increases by 40-50 points in last 2 mins with huge volumes, or ICICI increases similarly, then we can justify that last minute candle change happened due to increase but in this case, how can any one justify it.
Can see the volume here for ICICIbank for last 2 mins and see the price spike on that day. Close will be based on volume weighted average, can see volume bar.
hi @siva not sure which is the screenshot shared by you.
Below is the chart from BSE for ICICIBank on 24 Sep 2024, 15:19
Volume on that candle is 745, the next big candle is 09:15 of next day (volume: ~5.9 K)
This is screenshot from ZERODHA kite Tradingview chart
Such candles or volumes arent seen on NSE chart also on that day.
Check for 23rd, that day is bankex expiry.
@siva, thanks for correcting/replying. My mistake, sorry. But have a follow-up question. based on the snapshot below for ICICIbank NSE volumes(left side, volume at 15.289 is ~157K) and BSE volumes(right side, volume at 15.29 is ~114 K which is highest in BSE 15.00 to 15.29 minutes) .
Since BSE derivative liquidity is much less, can someone be gaming it? Is one exchanges derivative settlement solely based on that exchange price/volume? Then if some big-shots like bank treasury/FPIs who has view of full orderbook, gamed it just to wreck a forgotten order entry high above in the order book? few lakhs of ICICIBank shares spent and they can make a killing with Near-the-money unsuspecting and unexecuted orders in the order-book?
Totally possible, nothing wrong in it legally, and I personally believe we should not comment on morals.
We as retailers should be aware that these things can happen and be alert. Guess this is similar to what companies like jane street is doing in markets from last 2 years.
