iCharts Discussions

[Raynor]

points observed by me:

1. i am remembering some thing like this during 2011.. there was Greece fear in Europe.. then came piigs problem.. during those time market was falling in general like this.

2. one day us market fall 3 to 4 percent but nifty discounted one percent in opening and remained flat or positive

today during first 5 minute there is a sharp fall..

observing closely..
in first 5 minutes market fell 8400 to 8000 and volume is 2 million if adjusted for old nifty it is 1 million

possible reasons..nobuyer during first 5 minutes.. this lead to free fall
due to panic.. freefall aggregated by sl algorithms.. if many people conservatively placed the sl below 8300 means initial freefall triggered another freefall because stoploss of many people triggered and given a sell at market price and still there is no buyer

but who is buying after 5 five minutes.. they are people called option sellers.. yes assuming market will go up there will me naked put option sellers or some other put sellers who may followed some call put strategy

for naked put sellers they have to buy immidiately once stoploss trigeered.. thats the reason for sharp recovery during first5 minutes.. after sometime the other type of put sellers have closed their position by buying nifty who provided the price support and prevented the nifty fall further for some time..

leassons learn though we are future players.. there are other types of people who are called option players.. at any point of time they have open positions for their puts..

if last night us market closed 2 percetn or even 3 percent, and if nifty fall drastically duriing first 5 minutes wait for the next 5 minutes so the price may rise fairly and we can sell or execute the stoploss order at fair price..

infact option wirters are the players and they will provide the balance to market if market rise or fall suddenly.. they will provide support during fall and resistance during spikes...

[kishjk7551]

@ Raynor this can be no way termed as a crash this is just a minor blip , like many others i am a witness to " 2008 CRASH " believe me you wont know what hit you when a real crash happens .

[Raynor]

yesterday range is 400 points.. that too formed in first 5 minutes yet nobody talks about it... day before yesterday i closed my positions out of some satisfaction and narrowly escaped the crash and the next day a fall of 400 points in first 5 minutes yet nobody talks about that.. is there any real nf future traders here...