NIFTY trading strategy
NIFTY is combination of top 50 companies of India which contain different companies from different sectors. for example: IT, Banks, Oil & Gas, Cement, Real estate, Infra, Auto sectors etc...But NIFTY future is traded by predicting/expecting the movement in nifty in near term.
NIFTY future is a derivative from NIFTY, which contains of different stocks from different sectors.
NIFTY index has been made to know the the fall and upward movement of market so one can easily track whether market is falling or going upward move from the current market price or last closing price.
But nifty future is a derivative and is derived from nifty spot and the nifty future derived by adding some premium or discount price in nifty spot.
In stock market nifty future is the best investment opportunity for who do not want to take more risk in any stock specific as it does not move sharply if there is any sudden move in any specific stock or sector as it contains lot many stocks from various sectors.
For the month of September one can buy NIFTY at current level 4864 on dated 19th august 2011 for a target of 5100.
For buying this nifty you just have to invest Rs 25000 and when the target will be achieved of 5100 you will be gaining of 236 points and your actual profit will be Rs236*50=Rs11800.
Almost 40% return you will be gaining with in a month of your invested capital.
Dear readers. Today on 30th august at 10 amSEptember NIFTY future is trading at 4974.
From my buying it has crossed 100 points.
Low risk traders can book partial profit as 100 points equal to Rs 5000 return on your Investment.
Risk traders can Hold NIFTY for target of 5050 with a SL of 4900.
Even it hits the SL this is also 36 points above our buying initiate.