If I want to trade nifty futures, is it important to track the nifty spot index also, or do traders only trade by looking at the index future and ignore the spot index?
It is a good idea to track Nifty spot index especially if your strategy looks at historical price levels, since Nifty future usually trades at a premium or discount to the spot, and this also keeps varying. However, if let’s say you are trading a lower time frame like 15 min or 5 min then looking only at the current month future could be sufficient.
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thanks, i mostly do intraday banknifty and nifty futures.