How F&O (Futures and Options) market can impact the Nifty 50 index

The F&O (Futures and Options) market can impact the Nifty 50 index in various ways. It provides a platform for price discovery of the Nifty index and its underlying securities, amplifies market movements, allows for hedging and risk management, and affects trading volumes and liquidity. As a result, investors often monitor the F&O market's activity to make informed investment decisions and manage their risk exposure.