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This is what I understood. On 3rd August SEBI implemented 2 new rules for F&O stocks which also impact indexes.

1) Closing Auction session

2) extended time for trading.

Closing auction session:

Here let's understand what happened previously. Previously we the trading of stock continued till 3.30pm for shares/option and the closing price used to be decided on the last 30 min VWAP ( volume weighted average between 3pm to 3:30pm) so to prevent that SEBI introduced new rules closing auction session so now instead of VWAP the normal trading stops at 3.15pm and after that till 3:35pm the trading is stopped and auction is happening where it like a normal auction but here only orders that are applicable to enter are in the +3 to -3 range so every order in that range will be eligible for auction and based on that a common price is decided there are many phases between 3:15 to 3:30 . 

Modifications and cancellation here are not allowed in this phases here order are not executed but rather stored and later executed.

So for at 3:35 we get final price and extended time 3:40 so that people can buy and sell based on the new close price.

Todays Verdict why sudden boost :

The auction is simply where highest bidder win so explanation by example 

If at 3:15 the stock price is 100 with the 3 % range we get 97-103 zone in auction zone but if someone places a substantial order let's say todays volume is 2 lac , someone places 1lac order for price 103 due to this with this much volume the auction price will be 103.

 The institution can buy to impact the F&O market and if the expiry is near a simple move in any direction and cause the Just OTM to become in the money so my delta the option which is basically worth less near expiry can suddenly gain value due to this. So basically all the hero zero trades are not allowed and becomes worthless.

SEBI called for reform but they are making retail life more and more difficult the only way a retail could have earned decent and substantial amount by hero zero is gone. Yes for some people it can ge good but more luck is needed rather than skill and hoping institutions buyers what you are doing.

This is my understanding, today was first day of experiments Tommorow weekly expiry will show more true color. If there are any mistakes please do correct me it is my understanding at simplest and basic  form. Thank you.

Today's nifty gain explained