how? huge vol with small price spread !?

onlinegtrash

Well-Known Member
#1
how? huge vol with small price print!?

(*sorry* again to repost the same thread again, Admins please delete the other threads!
I found out the reason why my previous thread got screwed!
it had the word 'print' in its title end, forum software interpreted as 'display page for printing'
so, if you want a read-only thread append 'print' to its title ;)!)

on 29 jun 2012,
30 Million Nifty have been traded at 9:22 AM, this is really a very huge volume (roughly 40-50 times the normal!) but the price spread shows only 3 points change !??

How 30M shares could be sold/bought, with out eating away the market depth !?

Is it some kind of fast circular trades, or somekind of huge transfer between two agents?

Or NSE is suppressing volume info in other candles but failed to suppress this particular candle !??

Or ...

30M spot Nifty, that's staggering amount of turnover,
why would anyone do it, even if it were some kind of circular/transfer trade!?

Does anyone understand the picture attached?
http://postimage.org/image/rzi6v83wl/
 
Last edited:

rocky9281

Well-Known Member
#2
How 30M shares could be sold/bought, with out eating away the market depth !?
Good observation..shows that you are taking interest at price and volume studies seriously:

In order to make you understand the reason why this happens,I will insist you to do 2 things:

1. Please go thru post number 6 of this thread->http://www.traderji.com/technical-analysis/52808-getting-closer-price-volume.html. (that says "Why prices Move: The Mystery Uncovered").

2.Once understood, replace any one of the five, say "50 shares for sell at 11" with 500000 shares for sell at 11. You will see that even a mkt buy order of 100000 will be unable to move the price....only bcoz a huge limit order is blocking its way.This will give rise to unususal trading volume BUT no movement in price.

The fact 2 b understood here is that the mkt order gets exhausted b4 the limit order..hence, no price movement seen..

Best of luck bro..
 

onlinegtrash

Well-Known Member
#3
2.Once understood, replace any one of the five, say "50 shares for sell at 11" with 500000 shares for sell at 11. You will see that even a mkt buy order of 100000 will be unable to move the price....only bcoz a huge limit order is blocking its way.This will give rise to unususal trading volume BUT no movement in price.
thanks for helping out!

I do understand why price ticks up or down, I want to go one level up !

I am trying to reconstruct a forensic report on what happened.

I do get the 'technical - how' part, am trying to figure out 'motivation - why' part !

Normally people hold only NIFTY futures, but 30M bought and sold on spot NIFTY chart is NOT a random spike,
how and who is buying/selling spot Nifty?

If big block dealers can set up such a situation 'how the situation happened' part.
If it were simple transfer of huge position from one agent to another, why go through market
and incur a huge turnover charges - part?
 

onlinegtrash

Well-Known Member
#4
well, I guess I found the right answer !

on 29th here is our guy who has contributed to the huge volume on that day!

CAIRN 65,764,501

around 9:22, huge dumping of Cairn India Limited, happened.
its price plunged from 327 to 302. CAIRN's weightage factor is 0.7 in Nifty (ICICI's factor is 6.38!) so... it didnot create any big movement in the Index despite its huge volume.


so, the mystery is solved.
 

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