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Time of India
3 days ago
- Business
- Time of India
Decoding India's trading trends with real-time chart signals: What technical traders should know
Decoding India's trading trends with real-time chart signals: What technical traders should know (AI image) As Indian markets continue to attract retail investors across asset classes, technical trading is emerging as a popular strategy among active participants in equities and derivatives. Traders who rely on candlestick patterns, chart structures, and price action signals are increasingly looking for faster, data-driven ways to identify actionable market trends—especially within the highly dynamic Futures and Options (F&O) segment. To address this evolving need, full-service brokerage firms like Angel One, with over two decades of experience in the Indian capital markets, now offer a chart-integrated feature that identifies trading signals in real time, surfacing potential bullish or bearish formations directly on stock and index charts. Covering NIFTY 50 stocks as well as NIFTY and BANKNIFTY indices and their option contracts, this tool allows technical traders to stay informed as patterns unfold—without the need to sift through multiple data points manually. Helping users interpret market signals visuallyThe feature focuses on surfacing signals as they appear, without implying any advisory intent. Whether it's a Doji candlestick on a large-cap stock or a Head and Shoulders formation on BANKNIFTY options, these signals are automatically plotted on the chart along with visual cues to help users identify their nature—bullish or bearish. Patterns detected include popular candlestick formations like Morning Star, Engulfing, Harami, Piercing, and Dark Cloud. Chart patterns such as Double Top, Double Bottom, and various Head and Shoulders setups are also covered, alongside price action indicators like open interest (OI) shifts and price momentum—particularly useful for F&O contracts. Real-time pattern recognition for multiple timeframes Signals are generated across multiple timeframes—ranging from 5-minute to daily intervals—offering flexibility for intraday, swing, and positional traders. The most recent signals appear first, enabling users to monitor fresh developments closely and make decisions based on their own trading systems and risk management strategies. Seamless access and execution Once a signal is detected, it is instantly plotted on the chart within the Angel One platform, with color-coded markers indicating its potential direction. This design enhances clarity, particularly for users tracking multiple instruments simultaneously. Since the signal appears within the trading chart itself, users can choose to act on the information immediately, if it aligns with their strategy. Importantly, this functionality does not constitute a recommendation to buy or sell. A signal formation—while suggestive of a potential price move—does not guarantee that the market will follow the expected path. Price action can diverge post-signal, and traders are advised to apply their own judgement and technical setups before taking any position. Designed for technical traders navigating volatile markets With increasing retail activity in the F&O segment, where contract turnover dwarfs that of the cash market, tools that simplify technical analysis are becoming integral to trading workflows. According to NSE data, index options alone saw massive growth in notional volumes over the past year, reflecting a growing appetite for actively managed trades. By making technical signals easily visible and accessible from within the Angel One trading interface, this chart-based signal feature helps traders incorporate pattern-based insights into their broader decision-making process. Empowering chart-based decision-making This feature aims to support informed trading—not drive it. The idea is to enhance transparency by making key technical formations more visible in real time. Whether a user chooses to trade based on a Morning Star candlestick or a breakout from a Rising Wedge, the responsibility and decision lie entirely with them. As India's F&O market matures and technical strategies evolve, such tools can provide traders with greater context and clarity in fast-moving market environments. Disclaimer - This is for educational purpose only Disclaimers: Investments in securities markets are subject to market risks. Please read all related documents carefully before investing. Such representations are not indicative of future results. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
16-07-2025
- Business
- Business Standard
Are we ready to handle market manipulations in electricity derivatives?
With the imminent launch of electricity derivatives in India, regulatory preparedness has become a matter of urgency. The recent Securities and Exchange Board of India (Sebi) order against Jane Street Group (JSG) offers a cautionary tale of strategic exploitation in derivative markets — one that India's electricity sector cannot afford to ignore. The Jane Street case: A wake-up call The JSG case exposed classic intraday manipulation. The group purchased large volumes of BANKNIFTY index and constituent stocks early in the trading day, driving prices upward. Concurrently, it took reverse positions in the options market. Later, they offloaded their holdings, pulling down prices and reaping disproportionate profits in the derivative segment, while absorbing manageable losses in the cash market. This trading pattern, which came to light through a US court case in April 2024, evaded Sebi and exchange surveillance for over 15 months until interim orders were finally issued on July 3, 2025. Notably, the detection did not stem from domestic oversight but through disclosures in litigation abroad. Sebi's timeline illustrates the vulnerability of surveillance systems, even when both cash and derivative markets are governed by the same regulator (Sebi) and the exchange ecosystem is tightly knit (NSE). The strategy deployed by JSG hinged on exploiting illiquidity in the cash segment and leveraging high liquidity in derivatives—particularly BANKNIFTY options around expiry periods. Electricity spot markets: The challenge of dual regulation The electricity market, structured differently, introduces additional layers of complexity. Three power exchanges—Indian Energy Exchange (IEX), Power Exchange India Limited (PXIL), and Hindustan Power Exchange (HPX) — serve primarily the Day Ahead Market (DAM) and Real-Time Market (RTM). IEX dominates both, handling roughly 3.9 per cent and 2.47 per cent of national generation respectively, amounting to just 7 GW and 4.8 GW in traded capacity. These figures do not reflect a truly liquid market. Further complicating matters, derivative contracts will be settled at prices derived from IEX and PXIL — despite PXIL's minimal volumes. In contrast to equities, where Sebi governs both segments, electricity markets have split jurisdiction: the Central Electricity Regulatory Commission (Cerc) oversees spot contracts, while Sebi regulates derivatives. Some of the large power generators individually control substantial capacity. As such, their ability to influence prices in illiquid markets is undeniable, especially since comprehensive trade disclosures aren't mandated under current protocols. Launch of electricity derivatives: Regulatory coordination is key With derivative contracts having debuted on MCX (July 10, 2025) and set to debut on NSE (July 14, 2025), regulatory silos present risks. While volume caps have been prescribed to prevent distortions, these are not fail-proof. Coordination between Sebi and Cerc must be seamless. Miscommunication or lag in action could have ripple effects — raising costs for electricity consumers and undermining market integrity. The JSG episode underscores the need for real-time surveillance, rapid response frameworks, and clear inter-regulatory protocols. If Sebi's mechanisms struggled with manipulations in tightly monitored equity markets, can the electricity sector — divided between two regulators — claim immunity? Time to ringfence and reform India's electricity derivative market is at a formative stage. This moment demands a forward-looking approach. Regulators must not only anticipate the nature of manipulative strategies but act decisively to prevent their execution. Surveillance infrastructure must be upgraded, communication lines clarified, and cross-market behaviour monitored in tandem. Regulatory failures in one segment must not cascade into others. It is imperative for Sebi and Cerc to insulate their constituencies, proactively guard consumer interests, and evolve with the market. While early action may have been missed, the JSG case offers a chance to set the ball rolling before it's too late.
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Business Standard
11-07-2025
- Business
- Business Standard
F&O Cues: Analyst suggests 'Bull Spread' on Bank Nifty, PFC; check details
F&O strategy: Primary trend of the Bank Nifty remains positive as it is placed above its 50 and 100 day EMA Derivative Strategy BULL SPREAD Strategy on BANK NIFTY Buy BANKNIFTY (31-July Expiry) 57,500 CALL at ₹497 and simultaneously sell 58,000 CALL at ₹319 Lot Size: 35 Cost of the strategy ₹178 (₹6,230 per strategy) Maximum profit ₹11,270 If BANK NIFTY closes at or above 58,000 on 31 July expiry. Breakeven Point ₹57,678 Risk Reward Ratio 1:1.81 Approx margin required ₹40,000 Rationale: Primary trend of the Bank Nifty remains positive as it is placed above its 50 and 100 day EMA Short term trend of the Index is positive as it is placed above its 20 day EMA It has been forming bullish higher top higher bottom formation on the weekly chart. Put writing is seen at 56,500-57,000 levels. FIIS long to short ratio in the Index Futures stands near oversold level, suggesting higher possibility of a short covering by them in the coming days. BULL SPREAD Strategy on PFC Buy PFC (31-July Expiry) 430 CALL at ₹12 and simultaneously sell 450 CALL at ₹4.80 Lot Size 1,300 Cost of strategy ₹7.2 (₹9,360 per strategy) Maximum profit ₹16,640 If PFC closes at or above ₹450 on 31 July expiry. Breakeven Point ₹437.2 Risk Reward Ratio 1:1.78 Approx margin required ₹19,500 Rationale: Long build up is seen in the PFC Futures, where we have seen 6 per cent rise in open interest with price rising by 2.80 per cent. Short term trend remains positive, as the stock price is placed above its 5, 11 and 20 day EMA. Primary trend turned positive as stock price closed above its 200 day EMA. Oscillators like RSI and MFI are in rising mode and placed above 60 on the daily chart, indicating strength in the current uptrend.
Indian Express
10-07-2025
- Business
- Indian Express
Jane Street ban triggers 21 per cent crash in NSE derivatives turnover, exposes market dependence
National Stock Exchange's turnover in the equity derivatives segment plunged by nearly 21 per cent on Thursday — the first weekly expiry after the Securities and Exchange Board of India (Sebi) cracked down on Jane Street — exposing the market's heavy reliance on the US firm's aggressive trades. The sharp drop, compared to the previous expiry on July 3, highlights just how deeply the allegedly manipulative player was embedded in the system. The overall turnover in the bourse's derivatives segment on Thursday stood at Rs 476.39 lakh crore, down 21.29 per cent, compared to Rs 605.23 lakh crore on July 3, a day ahead of the Sebi's interim order against Jane Street was released. The number of contracts traded on the NSE's derivatives segment was down 21 per cent to 25.25 crore on July 10, compared to 31.92 crore on July 3, according to the NSE data. Total turnover in the NSE's F&O segment on July 10 was the lowest since the weekly expiry day on May 8, 2025. With Jane Street, the most dominant player in the derivatives segment, barred from the market, turnover in the segment is likely to fall even further in the weeks ahead, market experts said. Last week, Sebi issued an interim order restraining Jane Street—a US-based proprietary trading firm—for allegedly using manipulative trading strategies. The firm consistently engaged in trading patterns that raised serious concerns about market integrity, especially during the expiry of index derivatives, according to Sebi. The decline in the total turnover on July 10 was mainly due to a 21 per cent fall in turnover in the NSE's index options. Turnover in the NSE's weekly index options on July 10 dipped 21.4 per cent to Rs 472.54 lakh crore, from Rs 601.24 lakh crore on July 3. The number of contracts in the NSE's index options reduced by 21 per cent to 24.73 crore from 31.4 crore during the period. Sebi examined the aggregate profit/loss made by the Jane Street group for the period January 1, 2023 to March 31, 2025. During the period, Jane Street's profits from index options alone accounted for around Rs 43,289.33 crore whereas losses in stock futures, index futures and cash cumulatively stood at Rs 7,687.21 crore, according to Sebi's interim order issued on July 3. According to Sebi's order, the most profitable trading day for Jane Street was January 1, 2024, when it made profit to the tune of Rs 734.93 crore. Total profit made by Jane Street in the investigation period stood at Rs 36,502.12 crore. In its investigation, Sebi found that BANKNIFTY index- a major index of the securities market comprising 12 stocks of the country's major banks – was prima facie manipulated in a complex and illegal manner aided by the Jane Street group's immense trading, financial and technological prowess. The group deployed two unauthorised proprietary trading strategies – Intraday Index Manipulation and Extended Marking the Close, the regulator said in the interim order. The group allegedly made a profit of Rs 36,502.12 crore during the period of investigation. The regulator has ordered the impounding of Rs 4,843.57 crore of unlawful gains made by the group through manipulative trading.
Time of India
07-07-2025
- Business
- Time of India
Jane Street to contest SEBI's manipulation charges: Reports
Jane Street rejects allegations Jane Street vs SEBI Live Events Pushback on exchange claims (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Securities and Exchange Board ( SEBI ) has accused Jane Street , one of Wall Street's biggest trading firms, of running what it calls 'an intentional, well planned, and sinister scheme' to distort the country's markets. The Financial Times reported the regulator's findings on Monday. Reuters has not verified this Friday, SEBI barred Jane Street from trading in India and ordered it to return over 550 million dollars of what it describes as illegal profit. The ban follows allegations that Jane Street moved Indian bank stocks in ways that triggered large payouts on connected Street has told staff it will fight the ban. In a memo sent on Sunday to around 3,000 employees, senior management wrote they were 'beyond disappointed' by SEBI's 'extremely inflammatory' accusations.'It's deeply upsetting to see the firm mischaracterised this way,' said the memo, quoted by the Financial Times. 'We take pride in the role we serve in markets around the world, and it's painful to have our firm's reputation tarnished by a report based on so many erroneous or unsupported assertions.'Jane Street's trouble with SEBI links back to a lawsuit it filed last year against Millennium Management and two former traders who left for the hedge fund. In that case, Jane Street claimed the traders stole a valuable strategy that turned out to centre on Indian options. SEBI's probe zoomed in on Jane Street's trades linked to the BANKNIFTY index, which tracks India's major banking are now checking other parts of India's markets too. Jane Street has argued that the trades flagged by SEBI were nothing more than 'basic arbitrage trading', a normal practice in the order also says Jane Street ignored warnings from local stock exchanges. The firm disputes this point strongly. In the same memo to staff, Jane Street said the regulator used 'a metric for market impact and trading aggressiveness which seems disconnected from actual market dynamics'.The memo added that when exchanges first raised concerns, the firm 'immediately turned off its trading until we could better understand the exchanges' concerns' and later changed its approach to meet their 'preferences'.'Once again, we left this process feeling that we had reached an understanding of the concerns and reflected them in modifications to our trading behaviour,' the memo said. 'Since February, we have made ongoing efforts to communicate with SEBI and have been consistently rebuffed.'Jane Street has 21 days to object to SEBI's order and ask for a hearing. The firm says it is working on a detailed response and plans to fight the ban in the meantime, India's regulators say they may widen the investigation into other trades and instruments connected to the firm. Jane Street's future in one of Asia's biggest markets now hangs on how this fight plays out.
