Nifty or CNX Nifty or Nifty 50 in India is the basis of equity market. Nifty 50 covers around 22 sectors in Indian economy. Out of the 50 listings of the Nifty 50 most are manufacturing industries, banking solutions and IT companies. Nifty is the largest single financial product in India that offers various on and offshore exchanges and also provide platform for exchange traded futures. Though, Nifty has great opportunities for both national and international investors, still market risk are something that affects stock investors directly with bigger impacts. As a wise stock investor, you must learn basic Nifty futures trading strategies which will help you in making smart decisions.
There are few futures trading strategies that is recommended by market pundits, analysts etc. These strategies have been analyzed over a period of years and therefore are very much relevant in context of instable stock market trends.
How to read trends and make right choices for futures trading strategies?
When you enter into stock market like most other people you will find its language very much a jargon. To read the movements of Nifty market with some precision you need to understand basic vocabulary and other operative principles of Nifty futures trading strategy, which will make your investment beneficial and fruitful.
* Any future and option stock is dealt as a contract between the buyer and the seller which expires every month on the last Thursday. Thing to consider in Nifty 50 is here all the business are offered in asset or stock. Whatever trading in future and option takes place is done in lot and trading starts with a payment of 15% margin money of actual cost of the purchased lot. This is very useful for first time investor’s or the small margin investors who wish to invest in share market.
* In future and option stocks you have facility to retain your stock for future and also manipulate with the margin and minimize your damages in case you can predict a timed loss that is awaiting. This is an important feature of Nifty futures trading strategy as it allows investors operate with minimum risk and their market share stays under their direct control.
* In other futures trading strategies, future and option analysis is very important as it helps investors in making good choice with regards to investment. Market analysis is only possible when market trends are observed over a period of time with critical micro analysis. When going for any particular company of your choice you must do its relevant analysis before making your investment. In this process you can keep a watchful eye for the company concerned for a month or two, even 2-3 weeks study will also be handy for this purpose.
* Believe it or not, stock market investment largely depends on predictions. When predictions are to the point chances of losing your investment is very less. One thing is important here; your prediction must have relevance with the changes of market.
These are some important points to consider while you formulate your Nifty futures trading strategies.