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    What went wrong with Bank Nifty options? Nikhil Kamath explains

    Synopsis

    'I would advise some caution for someone trading the Bank Nifty contract'

    Nikhil Kamath of Zerodha on NSE glitch affecting brokers
    The Co-Founder & CIO of Zerodha says the good thing is that the exchange has set execution ranges. So if one were to place an order far away from what the price should be, it would get rejected.

    What has been the communication with NSE if you have contacted them already?
    Most of the options seem fine, be it Nifty or stock futures. The issue is only with Bank Nifty, wherein the prices are not seeming right. The good thing is the exchange has set execution ranges. So if you were to place an order far away from what the price should be, it will get rejected anyways. We still do not have clarity why this is happening. As I speak, it seems to have gotten resolved and prices are coming back to where they should be.

    Is this a regular occurrence or does it typically happen during weekly expiry or monthly expiry? Or is this just a one-off?
    It is not a regular occurrence. It does not happen very often, but we still do not know why this is happening right now. It is for the exchange to come back and clarify. I am sure they will put out a statement in some time. If anybody is trading the Bank Nifty contract, I would advise some caution for a little while. It’s better to be safe right now and avoid it for some time.

    I am just getting feedback here. It seems the options are getting executed now and prices are coming back. But it seems that they are still 10% away from the price seen on the screen, and 10% is huge?
    What we observed in the morning was that if there is an option trading at a premium of Rs 140, it suddenly went up to Rs 190 and then came back to Rs 140. And stuff like that. Aut at prices like Rs 190, they would not have gotten executed because of the freeze on execution ranges on a 5-10% move from where a premium should be.

    Would you say for sure Nifty options do not have any issue and it is just with Bank Nifty?
    It looks like that. It looks like Nifty options are fine for now. I am looking at the screen as we speak. I think the issue is only with Bank Nifty weekly options. But as an investor or a retail trader, the best thing to do is just give it a few minutes till it stabilises and we have some clarity on this.

    What is the exact communication from the National Stock Exchange?
    We do not have communication yet. I am assuming they are working on resolving the problem right now and they will put out a statement soon. As soon as they do communicate with us or they put out a statement, I will reach out to you and tell you.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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    29 Comments on this Story

    KESHAV VIJAY37 days ago
    zerodha always sks anyway
    Kalpesh Patel38 days ago
    I had filed complain in NSE . They have portal for investor complaints . Looking at how things getting calm today , I think nothing is going to happen . No one will get their hard earned money back .tried to raise ticket in Upstox as well . Every time they reply that we are looking for that . You all should file conplaint in NSE atleast once . Let's see what happens .
    Sibabrat Behera39 days ago
    plz share ur difficulty in social media. Tag Sebi n NSE in Twitter
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