Bullet Advisory Indian Stocks Explains How To Trade Nifty Future

We can take the position in Nifty future in the expected direction bullish or bearish.If we are bullish then we can buy Nifty future and if bearish then we can sell Nifty future.What trade we can execute
 

By: narendra nainani
 

Everyday we listen  about Nifty closing up or down, market bullish or bearish .We wonder how to trade Nifty and  earn profit .Nifty is an index and not a stock which can be bought and kept in a demat account then how to trade Nifty where we cannot take the delivery.

The answer is to trade Nifty future.We can buy or sell Nifty future.What are the points we have to keep in mind while trading Nifty future, how to calculate the profit and loss.First of all we have to determine the direction of the market whether market will  be up or down.We can take the position in Nifty future in the expected direction bullish or bearish.

If we are bullish then we can buy Nifty future and if bearish then we can sell Nifty future.What trade we can execute and what would be our position in terms of profit and loss are explained below with examples.If current price of Nifty in  July is 15800 and last date of expiry is on nth July then what trades we can do and what will be our profit and loss position is as stated below.

 

Trade we can do if we are bullish

(1)Buy Nifty Future July @15800  Lot Size 75
 
We can sell  Nifty anytime  till last day of expiry i.e., nth July and can book profit or loss.If we do not sell Nifty we have bought till lasts day also then  our trade will be automatically squared off at the settlement price of Nifty on last day of expiry decided by the exchange.
 
 

Different Possibilities with our Nifty buy position

 

(1) Nifty price 15850 and sold before expiry then
15850-15800=50*75=3750.00 Indian Rupees. Profit
 

(2)Nifty price 15750 and sold before expiry then
15800-15750=50*75=3750 Indian Rupees. Loss
 

(3)Nifty settlement price 15850 and we have not sold  Nifty till expiry then
15850-15800=50*75=3750 Indian Rupees. Profit
 

(4)Nifty settlement price 15750 and we have not sold Nifty till expiry then
15800-15750=50*75=3750 Indian Rupees Loss
 

(5)Nifty settlement price 15800 and we have not sold  Nifty till expiry then
15800-15800=0.0 Indian Rupees. No Profit no Loss

Trade we can do if we are bearish

(1) Sell Nifty Future July @15800   Lot Size 75.

We can buy  Nifty anytime  till last day of expiry i.e., nth July and can book profit or loss.If we do not buy Nifty we have sold till lasts day also then  our trade will be automatically squared off at the settlement price of Nifty on last day of expiry decided by the exchange.

Different Possibilities with our Nifty sell position

(1)Nifty price 15750 and bought before expiry then
15800-15750=50*75=3750.00 Indian Rupees Profit
 

(2)Nifty price 15850 and bought before expiry then
15850-15800=50*75=3750.00 Indian Rupees. Loss
 

(3)Nifty settlement price 15750 and we have not bought  Nifty till expiry then
15800-15750=50*75=3750.00 Indian Rupees. Profit
 

(4) Nifty settlement price 15850 and we have not bought  Nifty till expiry then
15850-15800=50*75=3750.00 Indian Rupees. Loss
 

(5) Nifty settlement price 15800 and we have not bought  Nifty till expiry then
15800-15800=0.0  Indian Rupees. No Profit No Loss

Before trading in Nifty we should be aware of  the margin requirement of the exchange.Over and above margin we will have to settle the  profit and loss on daily basis .depending on closing price of Nifty.We can get our margin money + profit or margin money-loss back once we square up our trade.We should also try to  know the last day .of expiry which is usually on last Thursday of the month before trading.We also have an option to  trade in Mini Nifty having lot size 20 where margin requirement is less compared to Nifty.

By,

Narendra Nainani
AHMEDABAD, GUJARAT, India    
Narendra Nainani is renowned technical analyst and stock market advisor of INDIA having experience of more than 26 years having excellent success ratio.Expert in Derivatives Products-Futures & Options,Intraday,Short Term ,Medium Term,Long Term,Portfolio Management,IPO & Mutual Fund Advisor.Covered regularly by E TV & Business Magazines like The Economic Revolution for Market views.

India's top most no.1 best stock market advice blog hot stock tips calls by expert technical analyst of India.Most preferred paid subscription stock tips calls  website India.Excellent success ratio of more than 90%.good superb trading ideas.Mobile and WhatsApp Number +919898162770
 

 

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