Why big movement on 1 pm , 1.30 pm etc

General
1

Hello experts , I am noticing daily that there is sudden up or down movement in following time , 1pm , 1.30 , 2 , 2.30 and 3 pm

Can any one explain why

3

Market can be volatile at any time due to any news… but
There are some factors which may effect indian markets on certain timing when the global markets react…
At 12.30PM Shanghai/Shenzen Stock exchange closes & Deutsche Borse /Euro opens.
At 1.30 PM Hong kong exchange closes & London Exchange opens.

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This is the time when most of the automated trading systems get activated and try to fire the order within the system (having 10mins, 15mins, 30mins, 1hrs candle as part of their strategy).

Good you noticed this. Now think how can you use this info for your own benefit?

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I noticed this within my first few months of trading, and 1 year hence, I have made zero profit out of having this info :rofl:

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If you see any sudden spike or bursts with no news trigger and especially at such sharp time (1:00, 1:30, 3:00), then you can safely assume that it is the work of market makers’ algos. If there is no further news to support the spikes, they tend to close their positions after hunting few SLs on their way in and out. See more on market making if you are interested.

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SL hunting is not possible; as the SL orders are not send to the order pipeline until triggered !

@zerodha : pls correct me if i m wrong .

8

Factual but practically SL is usually placed at supports and resistances which are common knowledge. The combination of common sense and knowledge gives great power to market makers with deep pockets

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when there is sudden huge spike against your direction and towards your trigger price, SL order is only then fired to exchange.

It is true that zerodha fires SL order only on trigger, but you should also know that market makers can spike prices of options unrealistically with no underlying movement whatsoever leading to trigger. They need not know your SL levels to hunt you. Simply they try their luck by spiking the prices for brief period and end up hunting few unfortunate sellers.

This is quite common phenomenon now a days on wednesdays and thursdays.

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  1. My theory of OP topic is big money “workers” rush to place bets before going to lunch + algo triggers and place bets due to the movement leading to higher volume. Similiar levels are seens around 2pm as well.
    Also could be due to breakout strategies being triggered after considerable market movement

  2. SL hunting does not have to be due to trigger based pipeline order actually being visible but near S&R levels using 2nd or 3rd order market psychology based guesses for scrappers/market makers as Varun pointed out