Many time confusion can happen what is to follow ?
We must follow Nifty future ( Not Spot Nifty ) While trading in Nifty options , Right ?
It is advisable to track the underlying spot price as it has a direct impact on option prices. Option prices are primarily determined by the spot price rather than the futures price. Additionally, it is important to note that the cash settlement for index options upon expiry is determined by the spot closing price, not the futures closing price. Therefore, closely monitoring the spot price is crucial for making informed decisions in the options market.
Read more details on Varsity here.
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Index doesn’t have Volumes… So volume analysis is not possible.Why hasn’t any broker thought of displaying Current month Futures Volumes on Spot charts?
Kindly refrain from spreading the wrong information on the forum.
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Who told you index doesn’t have volumes?
You can’t trade “NIFTY 50” directly. You do ETF, Futures and options, but not the index itself
Follow index future only in last week.
Then how does trading view display volumes on indices chart? Is it different?
Mention the name of the index so others can check.
NIFTY, SENSEX don’t even have ISINs as far as I know. There is no concept of holding 100 units of “Nifty 50” in your demat account. No idea where you are seeing volumes
They might be adding volumes of underlying stocks. The indice itself is not tradeable.
Edit: Yeah confirmed
The index volume is calculated based on the sum of the volume of all components of this index, relevant on the date of calculation. If there is a change in the component composition, then the calculation will be based on a new composition.
For daily resolution, index volume equals the sum of daily component volumes. For minute-based resolution, it is the sum of the component volumes for the desired minute. The remaining resolutions are calculated likewise.