Friday, October 29, 2021

NIFTY PREDICTION FOR NEXT WEEK 1 NOV TO 4 NOV 2021

 WEEKLY RESISTANCE FOR NIFTY: 17800, 18000, 18200

PIVOT POINT: 17650

WEEKLY SUPPORT FOR NIFTY:  17500, 17300, 17100

WEEKLY CHART FOR NIFTY


DAILY RESISTANCE FOR NIFTY: 17750, 17850, 17950

PIVOT POINT: 17650

DAILY SUPPORT FOR NIFTY:  17550, 17450, 17350

DAILY CHART FOR NIFTY










Monday morning, the global set up was good and in fact we over surpassed SGX Nifty by kick-starting the week well above the 18200 mark. However, Nifty immediately erased all gains in the following ticks and due to aggravated selling in few heavyweights, we slid below the psychological level of 18000 in the opening hour itself. Things did not look good at one point but fortunately the oversold market started rebounding from lower levels to again reclaim the opening levels. During the second half, index remained in a small range to conclude the session on a flat note. The global markets were indicating a positive start on Tuesday and in line with, our markets had a gap opening by a small margin. In the initial trade, we moved higher towards 18200 which got sold into immediately. Market slipped towards 18100 around the mid session but fortunately after couple of indecisive swings, we started marching higher towards the fag end of the session. As a result, the Nifty finally had some bounce back to end tad below 18300. Markets had a quiet start on Wednesday with mildly positive bias despite SGX Nifty was indicating a gap down opening by nearly 50 points. After consolidating around 18300 for nearly two hours, Nifty extended its gains towards 18350. It was once again followed by some choppy trades in a small band after the mid-session. However as we stepped into a final hour of the session, the heavyweight stocks started becoming a bit nervous, which eventually resulted in a sharp decline to conclude around 18200 with nearly three tenths of a percent cut. Despite Nifty was indicating a flat opening on Thursday, our markets started the day slightly lower and aggravated the selling right from the word go. In the initial hour we slid below 18100 and then as the day progressed, the bears thrashed all key supports one after another. Due to massive sell off in individual stocks, Nifty eventually plunged below 17900 to conclude the October expiry on a depressive note. In this process, Nifty concluded with nearly 2% loss, thereby marking a biggest single day cut after April 12, 2021. Market ended on weak note for the third consecutive session on October 29 with Nifty closing below 17,700 level. At close, the Sensex was down 677 points at 59306, and the Nifty was down 185 points at 17671.

NIFTY: A STRONG SUPPORT WILL BE @ 17500; STRONG RESISTANCE LEVEL SEEN @ 18000

We witnessed yet another week of correction in the market as it failed to sustain above the support 17700 levels. Our research shows that it is going to be crucial in the short-term for the market to sustain above the 17700 support zone. If the market is unable to sustain the level of 17700, we can witness lower levels of 17500-17300. Technical indicator suggests a volatile movement in the market.

TECHNICALLY SPEAKING

This imposed tremendous pressure on Nifty and in the process, Nifty had to finally surrender the sheet anchor support of 18000. In fact, due to aggrandized selling in the last 2 days, Nifty went on to slide convincingly below 17700. Since last few days, we have been maintaining our cautious stance on the market and even though market was making new highs, we maintained our skepticism and repeatedly advised booking profits. When market was not correcting, this might have sounded senseless, but historically it’s proven, when things look hunky-dory all around, the euphoric situation takes place and that is the time when market surprises with a corrective move. This is exactly what we witnessed in last 2-3 days, finally the bears looked in complete demand. The anticipation has now turned into a confirmation today by violating the 17700 mark. We can see weakness on chart which is the ‘Lower Top Lower Bottom’ on daily chart, coinciding with the convincing close below the ’20-day EMA’. For the coming session, 17800-18000 are to be seen as immediate hurdles; whereas on the lower side, 17600 followed by 17500 has become a sacrosanct support zone. Although midcap index has rebounded sharply, traders are advised not trade aggressively and it’s better to keep a track of mentioned levels. In the banknifty Post creating a fresh new high on Monday above the 41800 the prices have sharply corrected back below the 40000 within no time. Hence, yesterday’s fall has definitely wrecked the bullish sentiment. Prices have now reached 50% retracement of the recent rally and the 20 SMA. Going ahead, in case prices bounces from this support as the hourly oscillators are oversold; it should be used to lighten up long positions. In such a scenario, 39900 – 40500 is likely to act as resistance. On the flip side, immediate support is at 39200 and 38500 levels.

What is Diwali Muhurat Trading?

Muhurat Trading is the well-known old ritual that is being followed by the trading community from ages. This is the auspicious one-hour trading that is held on the day of Diwali and the time for the same is specified by the stock exchange every year. It is an old belief that by doing trade during Muhurat trading, a trader or investor will earn wealth and prosperity the whole year. This session is mostly held during the evening and most of the traders buy stocks during this time.

The word "Muhurat" means an auspicious time and as per the Hindu calendar, during this time, the planets align themselves in a pattern and doing a trade during this time brings in prosperity. Most of the traders trade during this time for religious, sentimental and traditional reasons.

How did it all begin?
Diwali Muhurat Trading is unique to the Indian stock markets only and brokers used to open the new settlement accounts for all their clients on the day of Diwali during the Muhurat trading session. The same tradition is followed in the capital market where on the day of Diwali, Laxmi pujan is done and investors purchase shares of the good companies so that they can hold them for long-term gains. Muhurat trading gives us two clear messages; to focus on quality and to invest with long-term goals.

Things that you should know about Muhurat Trading

1. Auspicious day to invest
The day of Diwali and especially the time of Muhurat trading is considered to be quite auspicious to invest one 's money. This is one of the reasons that many traders start the occasion with special prayers; moreover, they buy shares for the companies they wish to hold for long-term. One also needs to predict the stock market trading activity the day before to make a wise investment.

2. Good for new investors
Muhurat trade is also known as the most auspicious time for a new trader to do his/her first trade. One gets to understand the market and can experiment with a small investment. Once a thorough understanding is gained, traders can invest by picking up the best stocks.

3. Brings in profits for intraday traders
There are many traders who believe that Muhurat trading brings them a lot of profit as Sensex would have a bullish trend. Hence, many buy the stocks and sell them on the same day. However, one has to be cautious while doing so as there are Muhurat trading sessions where the Sensex has seen a loss. Also, there are times when the Sensex has dipped on the day after the festival.

What the investors need to do?
Any investor needs to lookout for good company stocks that are showing high returns or good cash flows to invest. Adding gold to your investment portfolio must be done wisely in order to generate good returns. At Motilal Oswal, we've recently launched Me-Gold on the MO Investor platforms, through whichthe investors can buy, store and sell 24K 999.9 pure Gold online.
Download MO Investor App or Login to MO Investor Web portal to start investing.
If you are one of those many traders who haven 't yet found the right time to start your first trade, Muhurat trading 2021 is the right time to venture into the stock market trading. This is the very exciting time for both investors and traders and it is important not to get carried away with the fervor to earn more and remember to trade smart. Muhurat trading this Diwali will be held on the 04 number 2021, On Thursday. The timings will be 6.15 PM to 7.15 PM.
So, it is time to get ready by doing your research on what stocks to trade and invest during the Muhurat Trading this Diwali.

STOCK FUTURE ROCKSSS

STOCK FUTURE GIVEN IN TODAY'S POST TO CHECK VISIT https://niftytipsdaily.blogspot.com/2021/10/stock-future-calls-for-29-oct-2021.html

INDIACEM FUTURE SELL CALL ACHIEVED 1ST TARGET 204.50 SELL GIVEN @ 208 PROFIT OF 10150

SAIL FUTURE SELL CALL ACHIEVED 1ST TARGET 113 SELL GIVEN @ 114 PROFIT OF 4750

NET PROFIT 14900

Thursday, October 28, 2021

STOCK FUTURE CALLS FOR 29 OCT 2021

 SELL 2 LOTS INDIACEM FUTURE BELOW 208 TARGET 204.50 /200 SL 212.50

SELL 2 LOT SAIL FUTURE BELOW 114 TARGET 113/ 111.50 SL 115

Advantages of investing in SIP

 Here is a look at the manifold advantages of investing in SIP.

Simplicity of choice:

With SIP, you can start investing small amounts, and watch it grow big. You can start investing with a minimum amount of Rs 500 each month. A SIP is not only simple and convenient to track, but also inculcates a sense of financial discipline, where you save more.

Rupee Cost Averaging:

The unique feature of SIP is the Rupee Cost averaging, where you end up buying more units when the market is low. Conversely, you will buy less when the market is on the upswing. This is because of the inherent feature of SIP, where at every market correction, you will buy more. Not only does this reduce your cost of investment, but also results in significant gains

Flexibility:

SIP provides you with tremendous flexibility. If you are afraid of long-term commitment by investing in instruments like Public Provident Fund (PPF) or Unit Linked Insurance Plans (ULIPs), then SIP is just the right answer. These are open ended funds, and could be withdrawn as per your choice. In other words, SIPs do not have a fixed tenor. You can either withdraw the full or a partial amount from your investment, without incurring any losses. What’s more the amount of investment is also flexible: it can be either increased or decreased. You must, however, remember to have a long investment horizon for wealth creation.

Higher returns:

As compared to traditional fixed deposits or recurring deposits, SIP provides double the returns. This can help you beat the rising costs because of inflation.

Power of compounding:

SIP operates on the principle of compounding or receiving compound interest on your investments. In other words, a small amount invested for a long time period would fetch better returns than a one-time investment.

Acts as an emergency fund:

Being an open-ended fund without any tenor, you can withdraw your SIP investment to meet any emergency situations like sudden hospitalisation or loss of job.

THINGS TO KNOW ABOUT PAYTM IPO COMING ON 8 NOV 2021

Paytm’s Rs 18,300-crore IPO — India’s largest to date — will open for subscription on 8 November 2021, at a price band of Rs 2080-2150 per share of face value of Rs 1 each. The IPO would topple the 2010 public issue of state-run Coal India Ltd as the largest ever. Paytm IPO will close for subscription on 10 November. The firm has increased its IPO size by Rs 1,700 crore to Rs 18,300 crore from Rs 16,600 crore, with the increment coming entirely from the existing shareholders selling more stake. The public issue comprises a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale of up to Rs 10,000 crore.

The book running lead managers for the IPO include Morgan Stanley India Company, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, JP Morgan India Private Ltd, Citigroup Global Markets India Private Ltd, and HDFC Bank. Link Intime India will be the registrar to the issue. Investors can place bids for a minimum of six equity shares and in multiples thereafter. Not more 75 per cent of the net issue will be reserved for Qualified Institutional Buyers (QIBs), 10 per cent for retail investors and the remaining 15 per cent for non-institutional investors (NIIs). The weighted average return on net worth for the last three fiscals is negative 36.9 per cent. Investors would require to ensure that the bank account used for bidding is linked to their permanent account number (PAN).

There are no listed companies in India that engage in a business similar to that of Paytm. The equity shares will be listed on the Bombay Stock Exchange and the National Stock Exchange. The company will utilise the net proceeds for growth and strengthening of its ecosystem, including customer and merchant acquisition worth Rs 4300 crore, and investing in new business initiatives, acquisitions, and strategic partnerships worth Rs 2000 crore, and general corporate purposes.

Digital payments have been growing steadily over time, however, India continues to be cash-driven economy. In FY 2021, the digital payments market size by value stood at approximately US$ 20 trillion with 43 billion transactions during the year. Consumers are rapidly switching to digital payments as it provides simple, safe and convenient ways to transfer money across accounts. Similarly, for merchants, acceptance of payments in digital form has increased significantly. One of the key examples of changing trends during COVID-19 was seen prominently in Kirana stores across the country. With increased focus on social distancing, government guidelines deterring people from moving for safety concerns, merchants moved to digital mode of payments leading to an increase in digital consumer to merchant payment volumes. Demonetisation in 2016, also played a role in pushing merchants to accept payments digitally and led to growth in products like QR and wallets.

Diwali Muhurat Trading 2021

 Stock exchanges will open for an hour this Diwali 2021 for the ‘Muhurat’ trading session on November 4. BSE and NSE will allow investors to buy and sell stocks from 6:15 PM to 7:15 PM on Diwali. The muhurat trading session is held every year on the occasion of Diwali, for an hour. The broking community performs Lakshmi Puja and trade during this period. The muhurat trading session has a block deal session prior to normal trading and is followed by a closing session. Last year, BSE Sensex gained 145 points to end at its highest ever closing tally at that time while NSE Nifty 50 closed below 12,800.

When is Muhurat trading?

According to a notification by NSE, the block deal session will start at 5:45 PM on November 4 and close at 6 PM. This will be followed by a pre-open session between 6 PM and 6:08 PM. The normal market will be open from 6:15 PM to 7:15 PM, followed by a Call Auction Illiquid session and a closing session. All trades executed in this Diwali Muhurat trading session shall result in settlement obligations. 

Why is Muhurat trading done?

Muhurat trading holds a special significance as it marks the beginning of a new year or ‘Samvat’. Investors believe muhurat trading brings wealth and prosperity throughout the coming year. The practice was started in 1957 on the BSE and in 1992 on the NSE. Going by recent market movements on muhurat trading, Sensex and Nifty usually end soaring higher during this special trading session. This muhurat trading will mark the beginning of Samvat 2078.

For Diwali stock picks keep reading the blog or whatsapp on 9039542248

Tuesday, October 26, 2021

Futures vs Options Trading: Which is More Profitable?

 Futures and options trading in India are both derivative instruments, meaning their value is derived from an underlying asset or instrument. Futures and options both have advantages and disadvantages. This article will list out the advantages of both the derivative instruments.

Advantages of Futures:

§  Productive Investment: 

Futures are not the best way to trade stocks, but they are an excellent way to trade specific investments such as commodities, currencies, and indexes. Their standardized features and extremely high levels of leverage make them especially appealing to the risk-averse retail investor. Because of the high leverage, those investors are able to participate in markets to which they would not have otherwise had access.

§  Fixed Trading Cost:

The margin requirements for major commodity and currency futures are well known because they have remained relatively constant for many years. Margin requirements may be temporarily increased when an asset is particularly volatile, but they are usually unchanged from year to year. This means that a trader knows ahead of time how much initial margin is required. The option premium paid by an option buyer, on the other hand, can vary significantly depending on the volatility of the underlying asset and the overall market. The higher the premium paid by the option buyer, the more volatile the underlying or the broad market.

§  No time lapse:

Futures Trading in India have a significant advantage over options in this regard. Options are wasting assets, which means that their value depreciates over time—a phenomenon known as time decay. The time to expiration is one of the most important factors influencing an option’s time decay. Time decay must be considered by an options trader because it can severely erode the profitability of an option position or turn a winning position into a losing one. Futures, on the other hand, are not affected by time decay.

§  Liquidity:

This is yet another significant advantage of futures over options. Most futures markets are extremely deep and liquid, particularly in commodities, currencies, and indexes that are widely traded. This causes bid-ask spreads to narrow and reassures traders that they can enter and exit positions as needed. Options, on the other hand, may not always have enough liquidity, particularly if they are far from the strike price or expire far in the future.

§  Pricing is straightforward:

Futures pricing is intuitively simple to grasp. The futures price should be the same as the current spot price plus the cost of carrying (or storing) the underlying asset until the futures contract matures, according to the cost-of-carry pricing model. If the spot and futures prices are not in sync, arbitrage activity will take place to correct the imbalance. Option pricing, on the other hand, is typically based on the Black-Scholes model, which employs a number of inputs and is notoriously difficult for the average investor to grasp.

Advantages of Options:

§  Cost-Efficiency:

Options Trading in India have a lot of leverage. As a result, an investor can obtain an option position that is similar to a stock position, but at a much lower cost. Assume you want to buy XYZ Corp. stock. You want to buy 200 shares of XYZ at Rs 130 each, which will cost you Rs 26,000 in total. Instead of putting up that much money, you could have gone to the options market, selected an option that closely matched the stock, and purchased the August call option with a strike price of Rs 100 for Rs 36. To obtain a position the size of the 200 shares mentioned above, you would need to purchase two contracts. This reduces your total investment to Rs 7,200 as opposed to Rs 26,000 previously.

§  Less Risk: 

Buying options can be riskier than owning equities in some situations, but options can also be used to reduce risk. It all depends on how you intend to use them. Options can be less risky for investors because they require less financial commitment than equities, and they can also be less risky due to their relative invulnerability to the potentially disastrous effects of gap openings.

§  Increased Potential Returns:

You don’t need to be a math’s wizard to figure out that if you spend less money and make nearly the same profit, your percentage return will be higher. That is what options typically offer to investors when they pay off.

§  Alternatives that are more strategic:

The final significant advantage of options is that they provide more investment options. Options are a highly adaptable tool. There are numerous methods for re-creating other positions using options. These are referred to as synthetic positions. Synthetic positions provide investors with multiple ways to achieve the same investment objectives, which can be very beneficial.

As we have discussed the benefits of both Futures and Options, it’s upon you as an investor to select the instrument that suits the best for you. Also, diversification of portfolio is one of the main winning strategies and investing in both will help you achieve it.

Benefits of Trading in Nifty Future and Nifty Option

 Before getting into knowing the advantages of Nifty Futures and options, we will understand what Nifty Future and option. Options are derivative products in which the buyer holds the right to execute an option to buy or sell shares or another underlying at a predetermined price (also known as the strike price) during a predetermined time period. Nifty options are a type of derivative instrument in which the underlying asset is the Nifty; similar to Nifty futures, they have a lot size of 50, different strikes, and multiple expiry periods. It is a derivative similar to futures, but unlike futures, your profit/loss will not be linear depending on the NSE NIFTY’s up/down movement.

As we all know, a futures contract is a derivative contract whose value is determined by an underlying asset. The underlying in the context of Nifty futures is the Index itself. As a result, the Nifty Futures derive their value from the Nifty Index. This means that if the Nifty Index rises in value, so will the value of Nifty futures. Similarly, if the value of the Nifty Index falls, so will that of the Index future.

  • Lesser number of Spreads:
    The spread denotes the bid-ask difference, which is the rate difference between buyer and seller quotes. It is significant for traders, particularly those who use the scalping trading method. The lower the difference, the lower the trading charges. Because nifty futures and options are widely traded, the bid-ask spread is nearly as large. As a result, trading in the Nifty provides you with better returns to buy or sell.
  • Diversified:
    The Nifty Future is completely diversified. The 50 stocks in the Nifty Futures Index come from more than ten different industries. This diversification provides stability and thus protects you when your point of view shifts in the wrong direction. This diversification also allows us to see a high-level view of the market in the short and long term trading.
  • Lower margins:
    The margin required to enter a position in nifty futures is only 8%. When compared to stock futures, an average 13 percent margin is required to obtain positions. For intraday positions, some brokers offer a trade in nifty futures with as little as Rs.5000 margin. In addition, some brokers provide nifty futures tips.
  • High Liquidity:
    Because of the high liquidity in Nifty options, it is simple to conduct research and make a trading decision. You simply need to examine a variety of out-of-the-money and in-the-money options, as well as open interest. These options can be used to hedge your long or short positions.
  • Hedge against stock portfolio:
    As the Nifty is a benchmark index, the majority of stocks exhibit the same trend. Because the stocks are likely to follow the Nifty change, it can be used as a hedging tool against your stock portfolio. Hedging, on the other hand, is reserved for large investors with large capital. As a result, small traders can exit if the market becomes extremely dangerous.
  • Far Month Liquidity:
    Because there is sufficient liquidity in Nifty futures contracts related to stock futures. It is simple to take a position by purchasing next and far month Nifty contracts. Complex trading strategies can be carried out on the Nifty futures using the long and short sequence.

Brokerage plays an important role in any Future and options transaction, and it holds the same for Nifty F&O aswell. 

Monday, October 25, 2021

Bank Nifty Option Tips and Strategy

Banknifty is an index of the 12 highest cap and most liquid stocks from the banking sector. Launched in 2009, this index is now heavily traded on the stock market, with a lot of traders making a living off exclusively specializing in Banknifty. Over the years, many traders who have focused on the trading of Banknifty options have devised a plethora of bank option trading strategies and the market is now littered with Banknifty tips and tutorials on how to trade in Bank Nifty. This article will provide a breakdown of 2 Banknifty option trading strategies as well as provide a number of Banknifty tips and Banknifty option tips that can potentially help you understand how to trade in Banknifty and take better trades in the future.

There are several pros and cons to Bank Nifty. On one hand, due to its high volatility, Banknifty is exceptionally attractive to traders who are looking to generate a quick profit, as price jumps are more likely with this script. This characteristic also makes it more appealing to intraday traders, as any profit margin over 2-3 % per day is a good day’s trade for a trader. However, it is this same volatility that causes this script to be extremely risky. Put simply, the concept of ‘what goes up must come down’ is fast forwarded, as the price is likely to jump, and if you are not present to book your profit on time or take a bad trade, the chances of loss is amplified, as is the amount of loss you could incur.

Keeping this in mind, let’s take a look at how to trade in bank nifty, how to trade Banknifty options as well as some Banknifty tips and Banknifty option tips.

1. Strategy #1

This Banknifty option strategy applies only to intraday trading.

First, Chart a 5 min Candle Chart in your charting software. Next you have to pick the point at which you will commence your strategy. You must either pick a point wherein the first two candles are either both bullish or both bearish. If your first two candles are bullish, you must place the buy order at the high of the second candle. Once this is triggered, the stop loss order must be set at the low of that same candle. Alternatively, if the two candles are bearish, you do the exact opposite and place your buy order at the low of the candle, with the stop loss order at the placed as a buy order at the thigh of the candle.

One can also employ a bracket order in order to carry out this strategy. In this situation, your stop loss order is set at 40% of the height of your candle. Here we are chasing a 1:2 ratio and therefore, the target is placed at double the height of the candle. For instance, if the height of the candle is 40 points, you place the target order at 80 points. It is important to note that if both candles are bullish you must focus on placing sell orders only, and vice versa if the first two candles are bearish.

2. Strategy #2

This strategy is split into two parts. Sell trades and buy trades.

a. Sell trade

If the market opens at a gap down (a jump to a lower price from last days close), you must wait for the chart to fill that gap. When a candle fills this gap, you place a sell order at that point. Analysis and trend studies predict that the price is likely to drop from this point. The sell order therefore, protects you from this fall in price.

b. Buy Trade

This Banknifty option trading strategy is designed for when the market opens at a gap up. When you notice the market opening at a gap up, you once again wait for a candle to fill that gap and then proceed to place a buy order at that point. Contrary to the ‘sell trade’ section of this strategy, the price is predicted to rise, allowing you to get skin in the game before this happens and subsequently possibly turn a profit. While the gap is usually filled within a day, another one of the Banknifty tips states that if this is not the case, you simply wait for the gap to be filled in the coming days and place your orders then.

Setting your targets and stopping losses is an integral step of these Banknifty option tips. In order to gauge where the stop loss and targets must be placed, chart a horizontal line from the high of the closing candle. This is also the point at which you place your buy order, and once the market corrects to cover this gap, your buy order will be completed. The stop loss should be placed at the low of the closing candle. Similar to the previous Banknifty option trading [ ]strategy, another Banknifty tip is to place the target at twice the height of the candle. For example, if the candle is 50 units, your target should be set at a hundred.

There are some key aspects to this Banknifty option strategy. The first is that in order to succeed, your gap of choice must have be of 100 points or more. If it is below 100, you wait for the next gap and skip this one over. You can use a 15 min time frame chart for this purpose.

Conclusion

Banknifty is an attractive script for investors looking to make a profit quick, however its volatility warns caution against the risk. There exists extensive research and theory on how to pay bank nifty, however these tips and strategy are easy beginning points to enter the world of trading. There are a number of options for how to trade Banknifty options and using the right Banknifty tips and Banknifty trading strategy, you could gradually get better and make more successful trades.

Intraday stock option trading

 On an intraday basis, you can swap nifty or stock options. A trader must open a bet at the start of the market day and close it before the end of the market day. Intraday trading is similar to options trading in that it requires you to execute a set of steps. It would help if you kept an eye on the stock's volume and price volatility.

Trading volume: Trading volume refers to the cumulative number of traders who purchase and sell a stock in a specified amount of time, typically a day. The higher the share's value, the more active it is. The information indicating the amount of a particular claim is readily accessible.

Price fluctuation: It is impossible to predict significant variations in stock price over a day. However, there are several stocks whose values fluctuate enough that you can benefit if you invest in them. As a result, you should choose a stock whose price fluctuates enough to enable you to benefit within a day.

The vast majority of retail traders exchange stock options on an intraday basis. Since options are so unpredictable, you can take the chance to make an intraday trade if you see one. Short-term traders use intraday share price swings and other technical charts to determine the right time to enter or exit a deal. Based on this study, trading techniques applied that take advantage of short-term market swings.

Intraday trading strategies are also commonly used in options trading. Option values do not fluctuate as quickly as the prices of the underlying stocks. Traders, on the other hand, keep an eye on intraday market volatility. It allows them to distinguish times where the option's price varies from the stock's price. It is the point at which they make their pass.

How to invest in Nifty?

The Nifty is an Indian stock market index that serves as a benchmark. Nifty accounts for nearly half of the NSE's overall trading stock. It is a barometer of the NSE's overall efficiency, and by extension, the Indian economy. If the Nifty is rising, it means that the whole industry is increasing as well.

Investing in the NSE is not the same as investing in the Nifty. If you invest in the Nifty index, you will profit from the growth and profits of all 50 stocks in the index. You will invest in Nifty-100 in several ways.

1. Spot Trading– You should purchase a Nifty script, which is the most straightforward and transparent way to trade in the Nifty. It is the same as buying stock interests of several publicly traded firms. Once you have purchased the stock, you will profit from the index's numerous price fluctuations, which result in capital gains

2. Derivative Trading– Derivatives are investment instruments that derive their value from an underlying asset. These properties may be indexes, bonds, currencies, or commodities, among other items—the parties concerned plan to resolve their contract later. The benefit is created by speculating on the potential valuation of the underlying asset. Futures and options are two types of derivatives that can use to exchange the Nifty index directly.

Nifty Futures: A futures contract is a deal between a buyer and a seller to purchase later or sell an excellent agreement. If you see that the price has increased over the contract duration, you can sell it and benefit. You should wait it out until the settlement deadline if the price rises.

Nifty Options: Under this form of deal, the buyer and seller agree to purchase and sell the Nifty stock in the future at a price they settle on now. The contract's holder pays a fee and receives legal rights to buy or sell the Nifty stake in the future. However, since this is a privilege, not an obligation, the buyer may opt not to act if the price is not beneficial to him.

3. Index Funds– An index fund is an investment fund with a structured portfolio to maximize market exposure. It accomplished by tailoring a portfolio to align the components of a stock benchmark in such a way that it has a broader market exposure. These funds invest in the Nifty, as well as other indices.

The Nifty index's growth in popularity in recent years has drawn a broad spectrum of investors from retail, institutional, and international markets. These investors buy Nifty directly or by index funds. If you're looking for a new way to invest, these considerations make Nifty an appealing choice.

Sunday, October 24, 2021

OPTION CALLPUT TIPS FOR 25 OCT 2021

 BUY 1 LOT SBIN 580 NOV CALL @ 11 TARGET 13

BUY 1 LOT HINDALCO 500 CALL @ 2 TARGET 3

NIFTY FUTURE SELL CALL ROCKS

NIFTY FUTURE SELLING PREDICTED ON FRIDAY 17 DEC 2021 TO CHECK VISIT  https://niftytipsdaily.blogspot.com/2021/12/nifty-outlook-trading-level...