see what happened today.! did you see how many points it came down before resuming its climb back.
almost 70 points on nifty and 300 points on the bank nifty. see the extent of stops being hunted.
Though there is skepticism on this i know from friends who work with hdfc securities and motilal, things like this and a few other things are routinely done by them. they play havoc on option expiry days. in fact recently SEBI took up cases on this against a few entities. with the structure of our index( especially bank) it gives a easy opportunity to these chaps to manipulate. and somehow the laws are not stringent enough here to prosecute these sort of things and the watchdog also doesnt seem to be very strict.
just see the chart in the afternoon from the days high
70/300 points - I asked because, I dint see that much fall from day high at the time of your post (2:10 pm). particularly in BN ( high of 30540 appx and retraced till 30338 appx which is 200 points appx. spot levels.
Am I missing anything ? Anyway, that is not a important issue.
I am not a believer that some market participants will hunt my stops with a purpose.
Yes, Market can be manipulated. And that category of participants manipulate the market to make profit out of the price movements. And in this process, it may hit the SL orders which are on its way. But I don't think that the main purpose of manipulating the market is not just to hit the SL orders of retail traders.
SL orders get triggered as a consequence is what I think.
( Formed this opinion due to some logical reasons and this is limited only to options market )
About these guys from Broking houses like HDFC and Motilal, they do not have any special privilege or access to information than we have. Their purpose is solely Brokerage.
The havoc they do on expiry days, is only on their Clients accounts by buying cheap OTM options in lakhs of qty to generate brokerage. Not just the 2 companies mentioned. It is the same with almost all full service brokers ( especially offline/call & trade desks ) Logically, None of their OTM option trades can influence a inch of movement in market, except killing clients money. ( this is what I saw and experienced)