Stock Market

39.

5. Entry and exit messages are Sent

6. Many claim that their tips were 99 % accurate but it cannot be more than 80% accuracy.

7.These are available in packages valid monthly, quarterly, half yearly and yearly.

Discounts and special offers are given to get better market share.

Nifty Tips: They consist of

1.Stop loss: It is an order given to the investor to go ahead and buy or sell a security once the price of the dropped or climbed a particular price.

2.Target: The analysts extract the tips by analyzing the charts and studying financial statements. You should exit once the target is achieved.

3.The lot size should not be changed. Always trade in the same lot quantity.

4.Tips are needed as you may not have time to sit the whole day on the system. Tips could help you avoid breaking your head on trading. They are around to do the research and instruct you.

5.Tips can be got on your mobile phone but there is the risk of distortion due to disturbances in connection.

Nifty Future & Option: Fundamentals

A derivative is a financial instrument which has no value of its own and is obtained from another asset’s underlying. The underlying could be stock, commodity, securities, bullion, live stock or market index among others. The derivatives could either be a future contract or an options contract. 

NIFTY future strategy: Trading Guide

Derivatives are a commonly discussed topic in the investment and economic community. They are financial instruments whose worthiness is calculated by the value of the underlying assets. The assets meant here include bonds, equities, commodities, and currency among others. Futures & Options are the two types of derivatives and these are used by mutual funds to manage the risk, speculate future profits and settle for risk free profits. Derivatives can be used by the mutual funds in their portfolios in a better and more effective way by the various strategies which could be utilised to have good advantages. 

How to trade in Nifty Futures

Trading in the Nifty started only a little over a decade ago in the year 2000. The new millennium brought this boon for serious investors in the share market. In these ten years people have worked out many strategies regarding ‘how to trade in Nifty Futures?‘ The consensus is that one should trade with middle to long term view. The nifty is the index of the best fifty companies in India. 

What is Nifty Futures?

A contract in futures is an agreement between two parties regarding the sale and purchase of shares of a company at a future time. The intriguing part of the deal is that although the share will change hands in the future the price between the two parties is arrived at in the present. The day the shares will change ownership is called the delivery date. 

The buyer in this case expects the price of the share to rise in the future, while the seller feels that the share will fall in the days leading to the delivery date. In this case both are speculating on making a profit on the price they have settled in the present. In this case the buyer has a long position while the seller has a short position. The trade can be done in shares as well as in commodities. 

A big aspect of understanding ‘what is Nifty futures‘ is that the National Stock Exchange is the intermediary in this contract. This is enforced through margin money kept with the NSE on behalf of both the buyer and the seller. Daily fluctuations make a profit for one party and a loss for the other party. The difference is credited to the account of the party making the profit. In this way the accounts are maintained in a regular way till the delivery date. 

It is truly difficult to learn ‘what is Nifty futures’ without having some hands on practical experience. Buying, selling, margin money, delivery, long and short are part of the terminology used in these futures trades. 

What is NIFTY?

NIFTY is the leading index in the Indian Stock Market that keeps the record of the large companies on the National Stock Exchange. NIFTY is also known as S&P CNX Nifty, Standard & Poor’s CRISIL NSE Index or simply NIFTY 50. NIFTY represents 50 stocks that belong to 23 different economical sectors. NIFTY may be used for different purposes such as index funds, index based derivatives and benchmarking fund portfolios. The India Index Services and Products Ltd. Owns and manages NIFTY index. 

NIFTY has emerged as the only financial product in India which has the largest ecosystem. This ecosystem comprises of onshore and offshore exchange traded funds, exchange-traded futures and options that are linked to NSE in India and CME and SGX abroad, offshore OTC derivatives and other index funds. 

Tips for Nifty Futures

Nifty Future trading is done over a cycle of three months. The first month is the near month, the second is the next month and the third is far month. For example, if Nifty Future is done in October, November and December, then, October will be the first month as it is the near one, November will be the second month as it is the next month and December will be the third one as it is the far month. The settlement day of nifty future is the last Thursday of the expiry month. If we take the above example, the settlement day will be the last Thursday of December month. What if the last Thursday is a national holiday? In such a situation, the last trading day will be the settlement day. 

Nifty Futures trading is less volatile and provides greater flexibility. It is less volatile as compared to individual stock because a change in one or two stocks does not affect much. It provides greater flexibility in the sense that it is easy to trade, hold or get out of the marketplace. Also, while trading in nifty futures, you pay less brokerage. Moreover, the daily turnover in nifty futures is 2-3 times that of individual stocks. You can invest more as nifty margins are the lowest. 

SGX Nifty Future

SGX Nifty is Singapore Stock Exchange and is one of the leading stock exchange markets in whole of Asia. It implies that the Indian CNX Nifty is traded in Singapore exchange. In fact, it allows foreign investors to take position in Indian Market and hence, it is a very popular derivative product. Singapore Exchange does not allow Indian stocks to be traded but it allows trading of future products like SGX Nifty Futures. 

With the live quote of SGX Nifty Singapore future, it becomes possible to predict Indian stock market behaviour more correctly. Singapore stock exchange is opened about 3.5 hours before the opening of Indian stock market. Hence, the price of nifty future at Singapore exchange can tell you about Indian stock market as well. Nifty future trading is allowed only in F & O segment. 

Intraday Nifty futures

NIFTY covers 60 percent of the total market capitalization and is described as an index of 50 blue chips companies. These companies are listed in National Stock Exchange (NSE) and the performance of these companies is represented by Nifty. 

Trading done on future basis allows investors to speculate stock indices, interest rates and other financial securities on the future price of commodities. It allows investors to hedge their exposure to commodities. Future trading also allows producers to fix the prices for the goods that they are buying or making. This trading occurs on future markets all around the world.