- How do SGXnifty move in early morning when those 50 stocks are not traded and why that affects nifty index at morning (Gap up / Gap down)?
SGX is traded on Singapore exchange, its value has just a sentiment impact on Nifty, there is no hard and fast rule both have to be equal or similar
- Does Nifty future price affect nifty index price ?
No, traders trade futures based on their predictions of Nifty index spot. Sometimes in between future may go way higher or lower than justified compared to Nifty spot, but then traders will bring it down to proper levels by either short or long.
- Does Nifty options price affect nifty index price ?
No, again traders trade options based on their predictions of Nifty index spot. Sometimes in between option premium may go way higher or lower than justified, but then traders will bring it down to proper levels by either short or long.
- How can nifty index gets support at some important decision points like 10000 rupees , when price may vary purely when those 50 stocks price fall randomly.
While going up, Nifty creates a level or an area where lot of people went long, so if it falls back to that area, those people will defend it (just an assumption). It may also mean lot of big institutions bought at those levels, maybe there was a big event at that point of time. For e.g. last week 10350 was created as support due to the events of RBI governor resigning and Assembly elections
Now if Nifty falls there, its the job of those institutions who bought there to defend those levels, so they may buy the Nifty stocks to defend the support (if they feel it should be defended).
5.On expiry date , option ITM / ATM calculated based on index or future
It is calculated on settlement price of index which is average of last 30 minute prices of the index spot.