Posted by Brief History – NSE Nifty 50 Index , Stock Futures Trading
In the good old days Indian Stock Markets trading was only through BSE that one could trade stocks through the stock market via our stock broker. It was then a manual outcry process and there were no online stock trading possible.NSE commenced Nifty online trading in index futures on June 12, 2000. Nifty index futures contracts are based on the popular market benchmark S&P CNX Nifty index. NSE defines the characteristics of the futures contract such as the underlying index, market lot, and the maturity date of the contract. The futures contracts are available for trading from introduction to the expiry date.
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S&P CNX Nifty is a well diversified S&P CNX Nifty 50 stocks stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.
S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India’s first specialised company focused upon the index as a core product. IISL has a Marketing and licensing agreement with Standard & Poor’s (S&P), who are world leaders in index services.
- The total traded value for the last six months of all Nifty stocks is approximately 54% of the traded value of all stocks on the NSE
- Nifty stocks represent about 62.50% of the Free Float Market Capitalization as on Sept 30, 2009.
- Impact cost of the S&P CNX Nifty 50 for a portfolio size of Rs.2 crore is 0.16%
- S&P CNX Nifty is professionally managed and maintained and is ideal for derivatives trading
From June 26, 2009, S&P CNX Nifty 50 is computed based on free float methodology.
Nifty Futures Trading cycle: S&P CNX Nifty 50 futures contracts have a maximum of 3-month trading cycle – the near-month (one), the next month (two) and the far-month (three). A new contract is introduced on the trading day following the expiry of the near-month contract. The new contract will be introduced for a three-month duration. This way, at any point in time, there will be 3 contracts available for trading in the market i.e., one near-month, one mid-month and one far-month duration respectively.
NSE Nifty Futures Expiry day: S&P CNX Nifty 50 futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
NSE Nifty Futures Contract size: The current permitted lot size of S&P CNX Nifty futures contracts is 50 and multiples there of.
With the advent of online stock trading in stock and nifty futures, volumes soared many folds benefitting all the intermediaries such as stock brokers, Mutual funds & stock market advisory services.
This also unleashed many trading software and trading systems which provided trading platforms for investor and trader alike. A day trader could carry out Day trading using technical analysis and see live stock charts using one of many trading software in the market.
The investor/trader only needs to open a trading account with a stock broker and implement any of the trading strategies on the equity trading platform, index futures trading.
Stock market advisory services mushroomed by the thousands providing stock analysis, trading strategy, trading tips on day trade, daytrading future trading, swing trading, momentum trading, intraday trading, index strategies, underlying stock market trend, trade signals through mobile SMS and Instant messaging alerts.
For better understanding of the basics, please click Index and Stock Futures Basics .
We provide Algorithm trading based on Quant signals which cater to the needs of positional, momentum, short term traders. Please do click on the lastest trading signals on Gold, US Dollar , Indian Rupee, NSE Nifty.
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Do check out our Past Performance trading calls on the below link
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Nse Nifty 50 Futures are traded on NSE and on the Singapore stock exchanges. To get the latest quotes on NSE futures and options do click the respective links below:
Nse Nifty Index Futures – Current Quotes
SGX CNX Nifty Index Futures – Current Quotes
Happy trading.
