Hi Vikash,
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.
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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!
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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.
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Hi Vikas,
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!!
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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
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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 |
| Stop Loss |
0.5% |
| 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) |
| Initial Equity |
200000 |
| Brokerage |
50 per order |
| Margin |
10% |
Read more about this Intraday trading strategy and it's backtest report with AFL code in the below link:-
http://tradingtuitions.com/afl-of-the-week-intraday-trading-strategy-for-nifty/
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
[email protected]
Returnwealth provides algorithmic trading strategies to retail clients and has provided consistent returns of 70% on yearly basis. System trades only in nifty futures.
Please refer:-
http://home.returnwealth.com
Bounce! More views please! 
Hi Karthik,
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.
Hi 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.
Thanks
Dear Mr Karthik,
u rightly mentioned “If you are probably starting fresh and completely new to trading, I would suggest you spend more time on some of the simpler trades.”
sum times people gets exited and underestimate/forgot an old saying about market…everyday when market opens there are two type of person enters:one comes with experience and other comes with money & at the end of the day they interchanged their belongings.
I hv a question-How can a person with limited money can profitably do F&O Trading (esp. Nifty F&O) in current scenario (i.e.after hiking in lot size by SEBI) to create a passive cash inflow stream? Plz guide
Pl.feel free to say no/any reply,i understand the professional/other limitations.
Thank you so much for your time and consideration.
Regards
True Leaders don’t create followers…they create more Leaders – A Wise Man
