Basics of NIFTY Technical Analysis:
NIFTY is a well diversified index having 50 companies based in the National Stock Exchange from any of the 24 sectors. The sectors include telecommunications, cement, banks, computers, pharmaceuticals, mining and more. Based on their performance, the companies forming the INDEX are changed.
NIFTY is used by certain mutual funds as a bench mark and their performance are compared. NIFTY is owned by the India Index Services and Products (IISL) which again is a joint venture development between CRISIL and NSE. NIFTY is also called S&P CNX NIFTY while the CRISIL is a part of Standard and Poor (S&P).
Basics of NIFTY Future Trading Tips:
NIFTY Tips consists of
- 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.
- TARGET: The analysts extract the tips by analyzing the charts and studying financial statements. Investors can place the order of target level. They can exit once the target is achieved.
- Lot Size: Lot Size shouldn’t be changed. Always trade in the same lot quantity. Tips are needed as trader may not have time to sit the whole day on the system. Tips could help to trader to avoid breaking the investor’s tension on trading. Advisories are around to do the research and instruct to the investors.
Nifty Future (Index Future) and Nifty Option (Index Option):
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:
Derivatives are the common strategy 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. Future and 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 utilized to have good advantages.
How to Trade in Nifty Futures?
Trading in Nifty started only a little over a decade ago in the year 2000. The new millennium brought this benefit for serious investors in the share market. In these many years people have worked out many strategies regarding that” how to trade in nifty future”. The consensus is that one should trade with middle to long term view. The nifty is the index of the best nifty companies in india.