National Stock Exchange (NSE) developed as the first demutualized electronic exchange in India. In the year 1992, the advanced, automated and screen-based electronic trading platform was established in Mumbai. At present, in the position of Managing director and CEO, there is Vikram Limaye. Recently, in this year 2018, Nifty Share Price crossed 11,000 points and it is expected to see NIFTY at 12,000 marks very soon. The percentage of retail and institutional investors becomes high day by day. Trading becomes more active these days. People make millions only from trading. Therefore, Nifty plays a quite significant role in the country’s economy. Nifty comes with the easiest trading facilities for investors. This article will provide you with each and every detail of Nifty along with the background history, calculation process, and trading options, Nifty Share Price.
A Brief Historical Journey of Nifty
According to a recent analysis of April 2018, National Stock Exchange holds a market capitalization of more than US$2.27 trillion along with the rank of the world’s 11th largest stock exchange. According to the estimation of Economic Times as of April 2018, 60 million retail investors had invested their savings in stocks in India. Many of the indices come under Nifty. Indices refer to a statistical measurement of a selected section in the stock market.
Among the indices, NIFTY 50 is the most popular index in India and was launched in 1996 by the NSE. Generally, investors follow NIFTY 50 for getting an overall view of the stock market. When we use the term NIFTY, we generally talk about the NIFTY 50 index. The journey of Nifty Share Price from 1000 to 11,000 was not a smooth one.
What is NIFTY 50, and How Does it Form?
NIFTY 50 considers the broader benchmark index of the NSE (National Stock Exchange). The index had formed, by comprising 51 different shares of the companies. It covers 12 different sectors of the economy. As of March 31, 2017, NIFTY represents about 62.9% of the free float market capitalization of the NSE stocks. From the NSE official site, you will get the entire details of NIFTY 50 stocks along with the sectorial division. From the 1000 level, it has crossed 10,000 milestones in the previous year.
Calculation Methods
If you know the formula of Nifty, the calculation process seems to be easy. In order to calculate the Nifty, two components are required, base year and base value. The base year is 1995 and the base value is 1000.
Nifty 50= (sum of Free Flow Market Capital of 50 most liquid stocks) x index factor
Index Value = Current Market Value / Base Market Capital * Base Index Value (1000)
Free Float Market Capitalization = Shares outstanding * Price * IWF (Investable Weight Factor)
IWF = (available float shares)/(total shares outstanding)
Components of Nifty 50
Nifty Share Price & Technicals
The movement of Nifty as a whole defines the overall movement of the broader market. So if Nifty moves up we tell that the market is moving up and if Nifty moves down we tell that the market is moving down. Therefore Nifty share price in the live market and Nifty technical analysis are very important to watch for every trader and technical analyst.
Hence, from time to time and in the live market we will update technical trading data for the Nifty index. The first table furnishes live prices of the indices. The second table furnishes all major pivot point calculations for the Nifty index. For usage of various pivot points check our calculators section. The third table furnishes hourly indicator analysis of the Nifty index and mainly for short-term swing traders and the fourth table furnishes hourly moving average analysis of the Nifty index and mainly for the long-term swing traders.
Nifty Technicals
Now let us present various technical figures of the Nifty index.
Today’s Pivot Points
Hourly Indicator Analysis
| Name | Value | Action |
|---|---|---|
| RSI(14) | 28.51 | Sell |
| STOCH(9,6) | 99.24 | Overbought |
| STOCHRSI(14) | 44.90 | Sell |
| MACD(12,26) | -81.60 | Sell |
| ADX(14) | 64.17 | Sell |
| Williams %R | -1.26 | Overbought |
| CCI(14) | -210.32 | Oversold |
| ATR(14) | 48.35 | Less Volatility |
| Highs/Lows(14) | -37.56 | Sell |
| Ultimate Oscillator | 44.65 | Sell |
| ROC | -0.40 | Sell |
| Bull/Bear Power(13) | -140.13 | Sell |
| Buy:0 Sell:8 Neutral:0 Summary:Strong Sell |
Hourly Moving Average Analysis
Nifty Share Price Daily Chart
Various Methods of Nifty Trading
There are different methods of trading available in the stock market. Traders can choose any of the trading methods described below:
Intraday Trading
This is one of the most widely used trading methods among retail investors in India. In this method, your positions will be squared off at the market closing period. Basically, intraday trading is day-to-day trading. After opening the market, a share can be bought and before closing, you have to sell it. Otherwise, automatically it will be squared off. As the market is quite volatile, intraday seems to be quite risky for someone. Still, those who understand the market to some extent can make millions from the trading strategy.
Delivery Trading
Delivery trading, in other words, is positional trading. This trading style is basically for long-term followers. So, Delivery traders are generally long-term trade takers. It can be weeks, months or even years. The success of this trading style is to identify stocks with larger price movements. The Nifty points are rising every single year. Therefore, it is expected to see a great return on any Nifty stock after a long time horizon. Trading with a smart attitude can lead traders to a highly profitable return in delivery trading. Nifty points play a vital role in analyzing a stock to some extent. By watching Nifty points fluctuations. traders can identify the uptrend and downtrend of the market.
Short Sell
Among the popular trading strategy, short-sell is the one. If traders sell the stocks without even holding them, refers to a short sell. Let’s have a brief discussion about it. After selling stocks, buy before the end of the trading period, is termed as a short sell. The strategy behind this seeling is to anticipate the market whether it is bullish or bearish. If traders anticipate the market to be bearish, and the price may fall, traders enter into the selling. Hence, traders enter a short sell (sell shares) and later recover it by buying shares when the price falls. Here, one thing must remember is that you need to square off the position before the closing of the market. This means selling stocks at a high price and buying it back at a low price.
Buy Today Sell Tomorrow
Buy today and sell tomorrow is another popular strategic trading method. Here, unlike short-sell, after buying traders need to anticipate the rise in the price the next day. So, the next day after opening the market, the traders sell their shares and make a profit. In this buy today sell tomorrow method, traders don’t get the delivery of shares. The reason is the Indian stock market works on T+2 settlement cycles. Therefore, this is the main distinction between delivery or positions with buy today and sell tomorrow. In positional trading, you have your stock delivery but in BTST you have to work without having a delivery.
Future-Options Trading
Now, come to the part of the future and options. These FNO trading methods come under the derivative market. These trading methods play a significant role in the stock market. Future and options are worked on future contracts. Two parties are agreed and trade, here the future date and price are fixed. The only difference is in the future traders have the obligation to buy and sell but in options, traders only have the right. Traders can trade future options in the Nifty index also.
Conclusion
So, the above methods are the most applicable methods in the stock market. Apart from this, there are various trading methods in India but the above methods are the most applicable. Nifty not only shows the overview of the market position but also works as a trading tool. In Nifty, though NIFTY 50 is the best index to follow and anticipate the market fluctuations and price movements of stocks, there are other indices too. For example, Nifty next fifty, Nifty 100, Nifty 500, Bank Nifty, Nifty Pharma etc. In each sector, you will find the Nifty index for it.
The stock market is quite the biggest field in Indian economics. The article, Nifty Share Price and Technicals will guide you in every way to analyze the current market position. You can take Nifty Share Price as your base for trading in the stock market. Hence, Nifty Share Price plays a vital role here.