I want to trade only in nifty intraday. And would want to learn more about on the same. Can someone let me know good articles available that would be helpful to me?
If you are probably starting fresh and completely new to trading, I would suggest you spend more time on some of the simpler trades.
Nifty Futures is a beast on its own - It derives its value based on 50 different companies. While its a great instrument to trade (in term of liquidity), it comes with a baggage of complexities.
I’m not sure if there are any credible articles detailing on how to trade Nifty futures intraday. Guess you will have to go through the ritual of pain and gain.
I beg to differ with Karthik. He says that Nifty futures comes with a baggage of complexities. So my interpretation is that stocks/ stock futures don’t carry a baggage of complexities, which I would like to disagree. I think stocks carry more complexities, such as more volatility, higher gapping risk, chances of being rigged, correlation with major indices, correlation with other commodities, and so many things. I think if once can restrict himself to Nifty and or Bank Nifty, he has greater odds of success. Best of luck Vikash!
When you say NIFTY, I will assume Nifty Future. Ok. It is one of the safest and steadiest instrument to deal/trade with. Nifty is like a Big Elephant, it moves slowly and steadily. No doubt certain external factors do effect movement of Nifty, but then what is the fun if there is no movement. People/traders would not have traded in Nifty if there was no movement.
The best way to trade Nifty, is just to follow the TREND, when the Trend is up, just buy Nifty, and vice versa. But, you will take little time/patience to get to know the exact movement of Nifty, if you can master this, then you are Warren Buffet in the making.
I think, there are no good articles as such on Nifty, but you can Google and find out, there a many things on the internet. Only thing that can help you is real time trading Nifty or better still try to do paper trading. Hope this helps.
I am a fellow trader and I am also of the belief that index trading is simpler in terms of the illiquidity, insider trading, and other such risks which a retail investor runs. However, for most of us, technical analysis is complex learning. Personally, I believe that nifty indicates the market sentiment and a good way to trade it fundamentally is to gauge the market sentiment by talking to as many people as you can and following the market news religiously.
Hope this helps!!
I totally agree with karunakumari and gogo394. Derivative trading of indices - especially nifty or banknifty is the safest bet when compared to stocks and to reach there, in my opinion is just learn the basics of charting and eyeballing the charts everyday for atleast 6 months . And paper trading is mandatory. I have lost hell a lot of money with impatience and overconfidence. Need to read up a lot on trading psychology too until it gets inside the system. Many thanks to Madan for his advice and suggestions
Check out the link below that i found useful -
How Iam making profits with NIFTY Options Call Put Intraday Trading? What is my Strategy? What You need?
1. Basic Understanding of Index options, Call Put etc.
2. Good PC and or Laptop with UPS (In case of power failure)
3. Broadband Internet/ 3G Net connection.
4. TV with CNBC Channel (For latest news)
5. Good Android smart phone with 3G Internet and required App's.
6. Good Discount brokerage Account which charges you less brokerages. (Iam Using Zerodha.com).
7. After having everything set, what do you want. Most Importantly you need some tips from somewhere. Generally small investors trade on news seen on TV. They just watch CNBC or some other channel and makes their own decision to trade. But I have seen that they generally make losses with this approach. Small Investors always think that there are people inside market who can give valuable tips about doing intraday trading. After researching in Internet about these tips, I found that these tips do not serves the purpose.
8. I have subscribed for famous intraday tips for Rs 10000 (Oh my god) for one month, He generally gives one tip in a day. I was trading with major brokerage with 3 in 1 account. After one month trading, what i can see is Rs 10000 for TIPS + Rs 22500 for Brokerage + Rs 2500 Loss = A total loss of Rs 35000.
9. Tips worked for only half time, so what you got is what you loose and some dynamic trading by me made 2500 loss.
10. I have paid Rs 22500 as brokerages (Can u believe this?).
11. Paid Rs 10000 for tips.
After that I have changed my plan stopped trading for a month and checked what went wrong with me? I got this
12. I came to know that in Intraday trading, brokerage commission will play an important role, it adds to the buying cost of a stock / future / option . If it’s high then it would be difficult for the trader to make some good profit intraday. So I have Immediately shifted to zerodha. Zerodha he charges Rs 20 each order irrespective of size of order. And another advantage is you can save 90% on brokerages (Even 100%) with zerodha. 100% Saving on brokerages How? Zerodha presents the 60 day challenge which gives traders on equity (stocks and F&O), currency, and commodity exchanges an opportunity to put their trading skills to test. If you trade for 60 Days and stays in profits, your complete brokerage charged during this 60 days period will be refunded (What an offer).
13. And most importantly i have shifted to a wonderful Automatic buy sell signal software based on Amibroker AFL Formaula. Which generates buy and sell signals in live market and its very cheap. Rs 1000 only for Equity/F&O. So i have subscribed and started trading. You can see the Image below which shows the Automatic buy sell signa and its features (Comment here for more info on Automatic buy sell signal) (Please note that Automatic buy sell signal is not my site Iam just an user of that site).
14. Now my life has changed, I have made Rs 10500 Profit after paying brokerages of Rs 2500 only and Rs 1000 for Automatic buy sell signal.
15. Several times I have missed heavy profits because i have squared off early. Now I got confidence and making nice profits.
Thanks and Happy & Profitable trading.
For FREE Nifty STRATEGY of 70% SUCCESS rate please visit my page : http://intradaytradingsecrets.blogspot.com/2015/07/free-eod-screening-techniques-for_15.html
I want to share an excellent Intraday trading strategy for Nifty. This strategy uses RSI and ADX combination to find Buy/Sell opportunities. As a general rule, when RSI crosses an upper limit it indicates a Sell signal, while if it crosses lower limit it indicates Buy signal. But in this strategy, we are going to do the opposite i.e. Buy when RSI crosses upper limit and Sell when RSI crosses lower limit. ADX would be used as a trend identifier while taking Buy/Sell decisions. All the positions would be squared off at the end of day.
|Preferred Timeframe||Intraday 1 minute|
|Indicators Used||RSI(17), ADX(14)|
|Buy Condition||RSI(17)>=75 AND ADX(14)>25|
|Short Condition||RSI(17)<=25 AND ADX(14)>25|
|Sell Condition||Same as Short Condition OR Time>=03:15 PM|
|Cover Condition||Same as Cover Condition OR Time>=03:15 PM|
|Targets||No fixed target, Stop and reverse when AFL gives opposite signal|
|Position Size||150 (fixed) or 80% of equity (as per your risk appetite)|
|Brokerage||50 per order|
Read more about this Intraday trading strategy and it's backtest report with AFL code in the below link:-
Trading in intrday either nifty or commodity simple price action strategies will only work never use indicator for intraday you will end up in huge loss ema,sma Rsi are made for long term for intraday it will never work to make money price action with 3 lines and volume based entry visit intraday trading
Here the list of best institute to learn more intraday trading visit at chennai, Mumbai, Delhi
Returnwealth provides algorithmic trading strategies to retail clients and has provided consistent returns of 70% on yearly basis. System trades only in nifty futures.
Bounce! More views please!
I agree to your point that NIFTY is made up 50 different stocks and all of them contibute to behavior of NIFTY. But from a technical point of view I feel its always easier to monitor one stock than monitoring multiple stocks. Please share your thoughts.
Exactly my point Karunakumari. In fact nothing is straight forward and easy to deal with. I agree with all the single stock complexities you have mentioned. Now imagine The index - it is 50 such single stock and their complex factors all wrapped up in a barbed wire for you. While auto sales has an impact on Martuti and Bajaj, it does not have an impact on SBI or ACC…currency movement has an impact on TCS and Infy but does not matter much for say NTPC! However all these individual stocks collectively makes up the Index! My point is - if you cant understand what moves the stock then you are way to early for the Index.
Karthik, I am talking about trading Nifty using technical analysis, and not fundamental analysis. Are u trying to tell us that to trade nifty, we need to know what all the 50 companies are doing fundamentally?
completely agree with what u ve written, Sudesh.
Yes I am talking about NIFTY Futures. Can you please help me with some good articles on analysing NIFTY Trends. I have googled a lot of things but most of them were incomplete information or information that was not so easy to comprehend.
Futures is the most dangerous, Go for NIfty Call put, that too only BUY no sell.