Nifty Futures Freak High 8888 (July 21 2016)

Those who trade nifty futures might have noticed that the index futures contract that expires by 28 July 2016 made a freak high of 8888 on July 21 2016. In fact the open price of the contract is this value. On 20 July 2016, the futures contract had a closing price of 8584.15. The very next day, the contract opened 303.85 points up – seemingly without any explanation.

Days such as this is one of the reasons I tend to gravitate towards trading the forex markets. In forex markets, every up-move / down-move has a reason. Such ‘fat finger’ errors do not simply exist in the forex world.

I am sure that once all the stops were taken out by moving the price to 8888, the price of the contract will now gravitate towards 8150. Someone on the inside is about to make a killing in the coming days. Sadly NSE seems to be in bed with these culprits too because I am yet to see any kind of explanations from the exchange for such price movements; which, by the way happens quite often in the Indian markets.

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