Nifty Trading Calls

Brief History – Nifty Futures Trading

 In the good old days Indian stock market provided the means to trade stock through the stock market via our stock broker. It was then a manual outcry process and there were on 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. 

The Nifty: S&P CNX Nifty index is a composite of well diversified underlying 50-stock index take from 23 major 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 focussed upon the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor’s (S&P), who are world leaders in index services. Commodity trading is not possible on NSE stock exchange.

Nifty Futures Trading cycle: S&P CNX Nifty 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.

Nifty Futures Expiry day: S&P CNX Nifty 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.

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, Nifty trading calls , Nifty trading Tips, Nifty trading trend on day trade, daytrading future trading, swing trading, momentum trading, intraday trading, index strategies, underlying Nifty Trading trend, trade signals through mobile SMS and Instant messaging alerts.

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Happy trading.