Yes true..ultimately market works on....
1) DEMAND vs SUPPLY.
2) ASK PRICE Vs BID PRICE.
2) ANTICIPATION vs REALITY of what could be past/present/future "Worth of Trading Instrument"
But...
DEMAND Vs SUPPLY is engineered (like many other trading instruments) and so is ANTICIPATED and perceived REAL "Worth of Trading Instrument".
Why is it engineered..?
So that it can
fluctuate in big ways such a that
someone can..
1) sell direct equity at higher price and buy at lower price....
2) earn on Futs discount/premium price movements (specially near expiry)
3) earn on Options (specially near expiry for next months Options)
How is it engineered?
This is complex science and no one except those who are doing it knows it in detail..but in my close observation this is what is seen...
Price of each scrip in Nifty is moved in synchronization...to hold nifty at let say some level..one scrip (per say let say SBI,RIL,ONGC, LnT etc) is moved up and then halted there..again other is moved and halted there...then first one is moved down etc etc etc....it is like Piano with 50 keys...they keep pressing it one after other..up down down up up up down down...in such a way that each scrip and nifty results in desire levels to fulfill the main objectives as in above point...
So who is doing it?
Smart Money, Market Makers, DII, FII, Market Operators, Bull Cartel, Bear Cartel etc etc...it is all involved network...even I suspect Corporate Management of each scrip is also involved in such moves...
Options are the biggest earning instruments for them in the market
Though I am not saying each and every move is engineered but many of them are...this is my humble opinion and close observations while monitoring Nifty heat maps price and volume movements etc etc your views may be different and totally opposites...it's just my two cents !
Ultimately...
Piano is played in such a way that it psyches general retailers GREED,FEAR,DOUBT and HOPE emotions...and ultimately traps them and rest is known after that.....
those who plays with the trend and over comes all these four enemies are winner and those who goes against them and makes these four guys as friends are loosers..
What can we do to b winner?
- Discipline Discipline and Discipline - win your four enemies GREED,FEAR,DOUBT and HOPE....bit them with Trade plan with reason for entry in the trade, Strick SL, money and risk management etc etc.
- Trade the trend never ever try to trade what you think..trade what tune market is playing...
rgds, Nisha