Nifty Future.
Nifty futures has a very exclusive place in the Indian cognate markets.
It’s the most frequently traded futures tool, and in the Indian cognate markets; it has become the most liquid bond.
For Indian equity market, NIFTY 50 index is the benchmark stock market index of National Stock Exchange of India, Nifty is a wholly owned ancillary of the National Stock Exchange Strategic Investment Corporation Limited.
India Index Services and Products (IISL) owns and govern the same. Nifty Future.
There are agencies that provide their intra-day calling services to inform the traders about the current inconstancy of the market and help with stock buying and selling activities in Nifty, after an acceptance.
How to Trade in Nifty Futures:
Nifty future is a part of Future Bonds, and Future Bonds are the part of the cognate products.
Each and every bond has an expiry date of it. Nifty Future.
You can single out bonds either of one month or of three months bonds. Nifty Future.
A basic difference between stock market and futures is that you pay real cost to buy stocks in the stock market whereas you pay only margin amount to trade in a future market.
Nifty Future
Features-
- for intraday traders.
- Endorsement for trading in Nifty Futures.
- Tips on the basis of Technical research of nifty futures only.
- Recommended Capital: Rs.70,000 -1 lakh.
- We will recommend 1-2 tips daily. Nifty Future.
- At a time there may be 1 open position.
- We send our expert advice during market hours and current market price.
- Our Advise will deliver you through SMS, Whatsapp.
- All Tips are with Proper SL and target.
- Get trading plans specially designed for your needs.
- Get 24×7 dedicated customer support.
- Advice from experts only. Nifty Future.
- Finally, huge profits and peace of mind.
- Client satisfaction is our main aim.
- Technically strong advise.
Basics of Nifty future cognate trading.
How to trade in Nifty and make earnings.
- What is Nifty and how trading is executed?
- Profit of trading in Nifty.
- Hazard Involved. Nifty Future.
- Techniques to get acquisition in day trading.
- Details about Nifty and choice of trading.
You can Also Read:
| Commodity Trading In India |
Nifty Future
1) What is Nifty and how trading is executed?
- a) Nifty (S&P CNX Nifty) is the Index of Indian stock market on NSE (National Stock exchange) like Sensex on BSE (Bombay Stock Exchange).
- b) Trading is done on Nifty and it is called future cognate bond or future bond. The movement of Nifty cognate is based on a Nifty index. Nifty Future.
In stock market language – the Nifty index is called as “underlying of Nifty future bond” because the Nifty future bond is based on Nifty index movement.
- c) Nifty Lot Size –
Nifty future cognate consist of a lot of 75 quantities of Nifty.
So if you want to buy a Nifty bond then you have to buy one lot of Nifty.
The trading in Nifty bond is done in lots. Nifty Future.
- d) Trading cycle.
NIFTY futures bonds have a maximum of the 3-month trading cycle – the near-month (current), the next month and the far month. Nifty Future.
A new bond is introduced on the trading day following the expiration of the near month bond.
The new bond will be received for a three-month duration. Nifty Future.
This way, at any point in time, there will be 3 bonds available for trading in the market i.e., one near a month, one next month and one far month.
- f) Based on your trading position your account will get adjusted on daily basis as per the closing price of a Nifty cognate bond. Nifty Future.
Nifty Future
For Example –
If you buy one lot (75 quantity) of Nifty and strike at 8000 and Nifty closes at 8050 then Rs 50 as benefit profit then your total will be. Nifty Future.
75 qty x Rs 50 = Rs 3750.
- G) You can buy and sell on the same day or hold till the expiry of your future bond. You can even sell first and buy later and this is called as shortened selling. Nifty Future.
- H) Trader has to square off the positions before or on expiration. If you do not square off then the bond expires on the expiry date and the money gets adjusted in your account.
- h) You can buy and sell the Nifty cognate bond on any day of any month means of the current month or next month. Nifty Future.
2) Profit of trading in Nifty.
a) The trader gets an extra margin from broker to trade on Nifty.
For example – Nifty cognate consist of 75 quantity of Nifty index so the cost of one lot will become Rs 645000 [75 qty of a Nifty multiple by the price of a Nifty index, which is 8600 present price of 27 July 2016.
Please note – Trader need to have only 12% (approx) amount of the entire cost to trade in Nifty future bond so you need only Rs 75,000 (approx). For the latest prices please talk to your broker.
b) You can do day trading (Intraday trading) as well as carry forward (hold your nifty future bond) till the expiry period of your bond expiry date. You can buy an expiry of 3 months Nifty bond.
Nifty Future
- c) You can trade both sides of the Nifty means if you feel the market is going up then you can buy a Nifty bond and if you feel the market is going to fall then you can short sell Nifty and next buy it to cover up your positions.
- d) Very Low levy rates. Low levy rates increase your profit percentage. Currently, we have locked up with one of the reputed brokers and they are offering flat Rs 20 for buying and selling.
- e) High liquidity (volumes) – Very high volumes are traded in a Nifty future bond which will make the trader to square off at any time and at any price. If you only take 10 points as revenue then you can earn good money at the end of the month.
3) Hazard Involved in Nifty trading
Trading in Nifty future is a risky job.
As good benefits are taken in Nifty trading and losses are also quite possible.
Basically, trading involves a big risk compared to investing in stocks.
Either you trade in Nifty future or in any other future bond or trade in stocks.
Trading requires a lot of experience and market knowledge.
Investing and trading are two different components in the stock market.
Investing is not as risky as trading.
For trading, a trader needs to be attentive of domestic as well as international markets to make good profits.
For example – From Mar 2016 to Aug 2016 – Nifty has lifted from 7200 to 8700 so it comes to around 1500 points and that comes to around 200 points each month.
If you can figure out the markets both locally and internationally.
Because at the same time as this phase, international markets like the US and other Asian markets have also moved up.
Nifty Future
4) Techniques to get acquisition in day trading.
Trading on a daily basis lack of market knowledge and experience and also some techniques.
Movement Change of stocks and indices in day trading is based on various domestics and international factors so traders need to be very alert and quick in day trading.
If you plan to take small benefits and make multiple trades then the success rates are very high and your monthly profits will be good.
For more information visit how to take daily benefits and end your month in good profits.
- Details about Nifty and choice of trading.
If you are looking for more in-depth knowledge about future cognate trading and all other details about options and risk involved with examples then please visit NSE Future.
How to Calculate levy and taxes in Nifty future trading and take Benefit
In the following section, we will tell the details, how to calculate the levy and taxes in nifty futures trading and how profits are generated.
What is the amount required to start trading in Nifty future bond?
Nifty future trading appears in a lot and one lot consists of 75 quantities.
The amount necessary to trade is Nifty value and number of quantities but basically, only margin amount is required and that is only Rs 70,000.
But let’s see the real amount required for one lot of Nifty – Current Nifty value is 8600 x 75 = 6,45,000 but only margin amount is required and that is Rs 70,000 for one lot of Nifty.
This is the biggest advantage of trading in Nifty future cognate bond.
Now let’s see the taxes and levy calculation and how benefits are generated
Suppose if you buy one nifty lot.
Nifty Future
One nifty lot consists of 75 nifty quantities so the amount mandatory to buy the one lot of nifty is the margin amount and not the full amount.
Margin amount is Rs 70,000. Nifty Future.
The levy calculation on Buying and selling amount. Nifty Future.
Currently, a levy for trading in Nifty future is Rs 20 flat for buying and selling so the total levy the trader has to pay is Rs 40.
Note –
For such low levy rates, you can open a Demat account with this broker.
Some agent charge in percentage like 0.03% OR 0.04 % OR 0.05%.
The suggestion is to go for low levy rates and precisely flat levy rates.
The following rates may fluctuate based on different states in India so we suggest to talk to your broker to know the final taxation rates and details.
Nifty Future
The Taxes calculation on Buying Amount
In addition to the levy, the trader has to pay the taxes to Government
Taxes to pay-
1. The Service tax is 15% only on a levy.
2. The STT (Security Transaction Tax) is 0.025% only on selling value.
3. The Stamp duty on total turnover bread for a day which is 0.002%.
4. Finally, you have to pay Regulatory charges on total turnover bread for a day which is 0.004%.
1. Service Tax (ST) = 15% – ST is applicable only on levy. It applies to both buying & selling levy rates.
2. Regulatory charges + stamp duty charges = total comes to = 0.004%, Suitable to both buying and selling amount.
1. Service Tax is calculated only on levy – It is 15%
In our example, the levy rate is Rs.20 for buying.
= 20 x 15/100.
= Rs.3.
2. Regulative charges and stamp duty charges – comes to total 0.004%.
If you Purchase one lot of Nifty then the buying amount is
= Nifty value x quantities.
= 8600 x 75 (Nifty rate is of Oct 2016).
= 645000.
Regulative charges and stamp duty charges
= 645000 x 0.004/100
= Rs.25.8.
So the total Taxes you have to pay on purchasing amount is Rs 3 + 25.8 = 28.8.
Nifty Future
How to Calculate levy and taxes in Nifty future trading and take profit.
In the following section, we will explain how to calculate the levy and taxes in nifty futures trading and how profits are generated.
What is the amount required to start trading in Nifty future bond?
Nifty future trading appears in a lot and one lot consists of 75 quantities.
The amount needed to trade is Nifty value and number of quantities but basically, only margin amount is required and that is only Rs 70,000. Nifty Future.
But let’s see the real amount required for one lot of Nifty – Current Nifty value is 8600 x 75 = 6,45,000 but only margin amount is required and that is Rs 70,000 for one lot of Nifty.
This is the biggest advantage of trading in Nifty future cognate bond.
Now let’s see the taxes and levy calculation and how profits are generated.
Suppose if you buy one nifty lot.
One nifty lot consists of 75 nifty quantities so the amount needed to buy one lot of nifty is the margin amount and not the full amount.
Margin amount is Rs 70,000.
Nifty Future
The levy calculation on Buying and selling amount.
Currently, a levy for trading in Nifty future is Rs 20 flat for buying and selling so the total levy the trader has to pay is Rs 40.
Some agents charge in percentage like 0.03% OR 0.04 % OR 0.05%.
The suggestion is to go for low levy rates and precisely flat levy rates.
The following rates may fluctuation based on different states in India so we suggest talking to your broker to know the final taxation rates and details.
The Taxes calculation on Buying Amount
In addition to the levy, the trader has to pay the taxes to Government.
Taxes to pay.
1. The Service tax is 15% only on a levy.
2. The STT (Security Transaction Tax) is 0.025% only on selling amount price.
3. The Stamp duty on total turnover Bread for a day which is 0.002%.
4. Finally, you have to pay regulative charges on total turnover bread for a day which is 0.004%.
1. Service Tax (ST) = 15% – ST is applicable only on levy. It applies to both buying and selling levy rates.
2. Regulative charges + stamp duty charges = total comes to = 0.004%. Applicable to both buying and selling amount.
1. Service Tax is calculated only on levy – It is 15%
In our example, the levy rate is Rs.20 for buying
= 20 x 15/100
= Rs.3.
Nifty Future
2. Regulative charges and stamp duty charges – comes to total 0.004%.
If you buy one lot of Nifty then the purchasing amount is
= Nifty value x quantities
= 8600 x 75 (Nifty rate is of Oct 2016)
= 645000.
Regulatory charges and stamp duty charges
= 645000 x 0.004/100
= Rs.25.8.
So the total Taxes you have to pay on purchasing amount is Rs 3 + 25.8 = 28.8.
Now the total amount you have to pay to agencies including the levy & taxes for buying one nifty lot is –
Levy = Rs.20
Total Taxes = Rs.28.8
Total amount comes to Rs.48.8
Let’s see Profit’s generated on One Nifty lot
According to our strategy, we ask our traders to book 10 to 15 points benefit.
1) If you take 10 points benefit then your profit will be Rs 750 per lot ( Rs 10 x 75 quantity) and
2) If you take 15 points benefit then your profit will be Rs 1125 per lot.
Nifty Future
The Taxes calculation on Selling Amount
The flat levy rate is Rs 20 for selling.
The Taxes calculation on Selling Amount.
In addition to the levy, the trader has to pay the taxes to Government –
1. Service Tax (ST) = 15% – ST is applicable only on levy. It applies on both buying & selling levy.
2. STT (Security Transaction Tax) = 0.017% – STT is applicable only on selling amount rate.
3. Regulatory charges + stamp duty charges = total comes to = 0.004% = Applicable to both buying and selling amount rate.
Service Tax calculation (ST)
ST is 15%
ST is calculated on the levy amount and the levy on selling amount rate is Rs.20.
= 20 x 15/100
= Rs.3.
Security Transaction Tax (STT)
The STT is 0.017% and it is only applied to selling amount rate.
The selling amount rate is 8615 x 75 ( we have taken 15 points of profits.
an example we have purchased one Nifty lot at Rs 8600 and sold at 8615)
= 8615 x 75 = 646125
= 646125 x 0.017/100
= Rs.10.98
Regulatory and stamp duty charges are 0.004%.
The selling amount rate is 646125.
So 646125 x 0.004/100
= Rs. 25.84
So the total Taxes you have to pay on Selling amount rate is
= Levy amount + STT + stamp duty.
= 20+10.98+25.81
= Rs. 56.82.
Nifty Future
Total levy and taxes to pay for buying and selling one Nifty Future bond come to.
Buying amount including taxes and levy comes to = Rs. 48.8
Selling amount including taxes and levy comes to = Rs.56.82
So total amount comes to Rs.61.62.
Now let us see how much benefit we have left after deducting all charges.
1) If take profit benefit of 10 points for one nifty lot when it comes to Rs 750 per lot (Rs 10 x 75 quantity) and after deducting the total charges of Rs. 61.62, your net profit benefit comes to Rs 688 for one lot.
2) If take profit benefit of 15 points for one nifty lot when it comes to Rs 1125 per lot (Rs 15 x 75 quantity) and after deducting the total charges of Rs. 61.62, your net profit benefit comes to Rs 1063 for one lot.
Please note –
1. The above calculation is based on only one nifty lot, if you buy more nifty lots then the profits benefit will multiply accordingly.
2. The nifty bond price is taken as 8600 and this as on Oct 2016.
Trade in nifty future based on daily volatility.
Nifty Future
Introduction:
Indian traders have realized that benefit profit of trading in the nifty future from past couple of years.
However, learning little simplest technique can make someone a winner in the nifty trading.
So, I am going to give you one such technique which no one would have taught you before.
In fact, it is my own experiment and research.
Interpret the daily volatility.
In fact, it is the parameter which will give you the most likely move the nifty future can swing in a day.
In this case, the term ‘swing’ means the high and low difference in a day.
Then the next question is how to find the volatility?
So, in my book on Futures and options, I have given the simplest method to find the volatility using the logarithmic mathematical procedure.
If you do not have the book or you do not wish to calculate the volatility then the other procedure left out is referred the daily volatility column given in the NSE site against the Nifty future f &o quote section.
Nifty Future
I have taken the same to explain this concept to you. You may get a figure 1.23 for 9th October 2009 price quote in the bottom of the page.
In other words, it says the nifty future has the potentiality to generate 1.23% returns today either in the buy side or in the sell side.
For example, if nifty is trading at 5000 it will generate 5000X1.23%=61.50 point return.
In fact, this small arithmetic information is sufficient enough for me to take a wise trade decision.
Now it is the time to migrate to a more realistic example.
However, on 9th October 2009 at 10:45 a.m.
I found the nifty at 4999.
So, at that time the prior swing has recorded high 5021 and low was 4973 and the daily volatility was 1.23%.
The previous days’ closing was 5001.
Since the daily volatility is a derivation from the yearly volatility I will calculate the return points from the previous days closing which is 5001X1.23%=61.5123 round it to 62 points.
Further, the next big thing I can do is I will take the clue from the midpoint of high and low of the current day.
Further, as per my data, the midpoint is 4997.
As per the recorded data, the nifty high and low has created a swing of 48 points (i.e.5021-4973).
Moreover, my current price 4999 suggests I am just above the midpoint (hence I have a chance to scale 62-26=36 point from here in upside or 26 points down from here to complete the calculated return of 62 points.
The 26 points the difference between the low and the current price.
Nifty Future
Now the last job is to derive a trade decision.
Here the concept of a cycle will get focused since my return is 62 points as per the volatility and every completion of 62 points will start a new cycle.
However, it is often observed that if the stock trade above the midpoint then it has the most likely chance of going up and in my case, Nifty is above 4997 (midpoint ) and I will buy nifty at the current price of 4999 for target 5035 (i.e. 4999+36).
Same time I will put my stop loss as 4997-27=4970.
If the upside target is achieved then my next target will be in the 2nd cycle termination point of 5034+62=5096.
Similarly, the 2nd cycle of the Nifty will be 4908(i.e. 4970-62).
In between the 4970 and 4908, I will find one target at the midpoint of it (i.e.(4970+4908)/2=4939 )the 2nd target will be the midpoint of 4938.50 and 4907.50(i.e. (4939+4908)/2=4923.5).
Same way the intermediate target of the upside move for the 2nd cycle can be calculated.
Nifty Future
Now as per the calculation I have entered the buy trade and the stop loss is triggered and given me the opportunity to enter the short trade of the 2nd cycle.
You may surprise to see that that nifty low was 4923.05 on 9th October 2009.
Do I have the answer why the 2nd cycle halted at 4923? But it is beyond the scope of this article.
For your information, I will once again inform you this value is calculated when Nifty was quoting at 4999 and have neither made any of these calculated high or low.
So, this same trick can be applied to all the stocks just by referring its daily volatility and applying the midpoint concept on it.
Further, it will yield a much-refined result if you will apply my midpoint method as described in my book on Gann method under the 34 intraday technique section.
In reality, you will be in a position to calculate many intermediate target points and most likely reversal points using the midpoint method explained in the book.
Nifty Future
In Striker Stock Research, we always experiment and teach you the simplest method which is easy to understand and follow.
However the stock market or commodity market or forex market has different price tags and each method has its limitation and can be applied only on a selected group of a price tag. Nifty Future.
These refined techniques we teach in seminar programs. Nifty Future.
Try to use the above-discussed technique in Nifty Future and experience the success.
Trade in nifty future based on daily volatility.
Introduction:
Indian stockbroker has realized that benefits profit of trading in the nifty future from past couple of years.
However, learning a little bit simplest technique can make someone a winner in the nifty trading. Nifty Future.
So, I am going to give you one such technique and method which no one would have taught you previously before.
In fact, it is my own experiment and research. Nifty Future.
Interpret the daily volatility. Nifty Future.
It is the parameter which will give you the most likely move the nifty future can swing or fluctuate in a day.
So, in this case, the term ‘swing’ or fluctuate means high and low difference in a day.
Nifty Future
Then the next question is how to find the volatility or vaporization? In my book on Futures and options, I have given the simplest method to find the volatility using the logarithmic mathematical procedure operation.
If you do not have the book or you do not wish to calculate the volatility or vaporization then the other procedure left out is referred the daily volatility column given in the NSE site against the Nifty future f&o quote section.
So, I have taken the same to explain this concept topic to you.
You may get a figure 1.23 for 9th October 2009 price rate quote in the bottom of the page.
In other words, it says the nifty future has the potentiality ability to generate 1.23% returns today either in the buy side or in the sell side.
For example, if nifty is trading at 5000 it will generate 5000X1.23%=61.50 point rate return.
However, this small arithmetic information is sufficient enough for me to take a wise trade decision accord.
Now it is the time to migrate to a more realistic original example.
In fact, on the 9th October 2009 at 10:45 a.m. I found the nifty at 4999.
At that time the prior swing or fluctuate has recorded high 5021 and low was 4973 and the daily volatility was 1.23%.
The previous days’ closing was 5001.
Since the daily volatility or vaporization is a derivation from the yearly volatility I will calculate the return points from the previous days closing which is 5001X1.23%=61.5123 round it to 62 points.
Further, the next big thing I can do is I will take the indication from the midpoint of high and low of the current day.
As per my data, the midpoint rate is 4997. Nifty Future.
Nifty Future
As per the recorded data, the nifty high and low has created a swing fluctuates of 48 points (i.e.5021-4973).
My current price rate 4999 suggests I am just above the midpoint (hence I have a chance to scale 62-26=36 point from here in upside or 26 points down from here to complete the calculated return points of 62 points.
Further, the 26 points the difference between the low and the current price rate. Nifty Future.
Now the last job is to derive a trade decision agreement. Nifty Future.
However, it is often recognized that if the stock trade above the midpoint then it has the most likely chance of going up and in my case, Nifty is above 4997(midpoint ) and I will buy nifty at a current price rate of 4999 for target 5035(i.e. 4999+36).
So, at the same time, I will put my stop loss as 4997-27=4970 rate.
If the upside target is achieved then my next target will be in the 2nd cycle termination completion point of 5034+62=5096.
Similarly, the 2nd round cycle of the Nifty will be 4908(i.e. 4970-62). Nifty Future.
In between the 4970 and 4908, I will find one target at the midpoint of it (i.e.(4970+4908)/2=4939 )the 2nd target will be the midpoint of 4938.50 and 4907.50(i.e. (4939+4908)/2=4923.5).
Nifty Future
You may surprise to see that that nifty low was 4923.05 rate on 9th October 2009. Nifty Future.
Do I have the answer why the 2nd round cycle halted at 4923?
But it is apart from the scope of this article.
However, it will yield a much-refined result if you will apply my midpoint method as described in my book on Gann method under the 34 intraday technique section. Nifty Future.
Moreover, you will be in a position to calculate many intermediate target points and most likely reversal points using the midpoint method explained in the book. Nifty Future.
Moreover, in Striker Stock Research, we always experiment and teach you the simplest method which is easy to understand and follow.
However the stock market or commodity market or forex market has different price tags and each method has its limitation and can be applied only on a selected group of a price tag. Nifty Future.
Nifty Future Today
Nifty Future at past Session
Just look what happened, Nifty Future made low 10857 (writing about 10861 from last few days’) and reverse 233 points, and make day’s high 11090. Nifty Future.
Today it is going to be clear whether it was a bounce-back or part of the correction move (!). if it was a starting of bounce back then after an intraday correction Nifty Future will from day’s high up then previous high (11090).
Or if it was a part of correction, then we Nifty Future will break recent low to form new lower support level.
Nifty Future
FII/FPI & DII trading action on NSE, BSE, and MSEI
On Monday buy value of Foreign Institutional Investors was 5687.74 Cr. lower then sell value by -1841.63 Cr. It seems FII were at the sell side. Although the advance-decline ratio of Nifty 50 was 34:16.
On the other hand, buy value of Domestic Institutional investor was 4948.82 Cr higher than sell value by +1804.94 Cr.
India VIX Snapshot
At past trading session after making a borderline high 18.8625 India VIX made day’s low at 16.27. Today if the volatility index makes low around 15.1100 or breaks it then a sharp bounce back is quite possible.
Above 18.8625 it may run to form the new low.
OI at Option Trading
In fact, most active call on Monday was 11200, open interest adds 22, 52,625 contracts.
So, at last Friday this strike was most active, and Nifty Future made high 11090. Nifty Future.
And most active put was 10800, contracts add was 31, 92,900. Nifty Future.
Key Support-Resistance level of Nifty Future
Today below 11037/11034 Nifty Future will start to melt down, if stay below this level minimum fifteen minutes then may melt to 10946.35. Nifty Future.
However, below 10911 will take a small bit of time to touch 10884. closing below 10853-10840 Nifty Future may correct to 10751—10738.
Above Monday’s high (11090) next vital resistance is 11206. Nifty Future.