Greetings to all the knowledgeable members present here :-
I have some doubts in understanding SGX Nifty… And want to clear it… ( educational purpose )
As we know SGX Nifty is a derivative contract ( CNX Nifty futures) trading in the Singapore exchange… Having different times than the CNX Nifty and domestic investors are not allowed to trade in it…
(correct me if i am wrong)
Now, doubts:-
What is the underlying asset of the SGX Nifty?? As SGX Nifty is the nifty futures traded in SGX…
Mainly i want to know why in news, it is always said in the morning before the Indian market opens that SGX Nifty is up/down by this percent… then the CNX Nifty will be up/down in the early trading hours.
First of all SGX Nifty open at 6:30 am IST.
far ahead than CNX Nifty… And if trading.
happens in it… It means traders are just
speculating on the movements.
* How can a derivative contract of nifty (sgx
nifty) can affect the main CNX nifty??
* As we know nifty is moving up/down is
because of it constituting companies and
not because of trading in nifty futures .
And nifty futures react according to nifty...
So how can we say that sgx nifty has a affect on cnx nifty…
Please if any get this please reply…
Your replies can make wonders…
Your all assumptions are right!
Market is a chaos. And retailers are dumb. They are always looking for cues from here or there.
Koi kuchh toh tips de de.
Absolutely correct
CNX Nifty 50
Because retailers react. but many times nifty opening completely disregards SGX levels.
Yes Sir. That’s exact explanation of everything.
Bcoz we are idiots. Actually it just shows the sentiment of the market and also it reflects the US and Asia open sessions sentiments so we look at it.
I am asking this as a trading perspective and not in the perspective of investing… Because it has no effect in long term investing…
I came to a conclusion that :-
As SGX Nifty traded almost for 16 hours…that is open before CNX Nifty open and closed far after CNX nifty close…And is also one of the most liquid contract traded in SGX…
So,
We can say that some big players around the world is betting ( speculating) on it… Keep in mind the news, events which happens after the CNX Nifty closes would affect the indian companies the next trading day which in term affect the CNX Nifty …
So according to my little knowledge…
If SGX Nifty is raising up in the early morning session… It means the world players are expecting the chaos in the world would affect the indian companies in a positive way and thus the CNX nifty… And vice versa…
So most of the time it react according…
Correct me if i am wrong…
Your replies can make wonders @maddy_Des@ShubhS9
SGX nifty is futures only contract traded.
Derived from nifty and after market hours goes in the direction of other markets in the world which are open. That’s what i have observed.
