What is the Main Purpose of the Nifty 50 Chart?

Nifty50 on the SGX were trading higher at 18356 +36 points on indicating gap up opening for the NSE today. Nifty50 was trading higher at 18356 +36 points on indicating gap up opening for the NSE. Markets are expected to start cautiously tracking dollar after dollar index hit 2 year high. The nifty has bounced back smartly from its low of 18253 to close above 18300 level on positive trading sentiment in Asian markets. Nifty50 is now quoting at 18361.18 suggesting opening gap up for the NSE.


The nifty's 50 index trades above 18300 level indicating that Nifty 50 on the BSE also should trade higher for the day.  The nifty's 50 index are trading at 18356.00 which is 36 points up from yesterday's close of 18320.00. If Nifty50 on the BSE close above 18400 level, it may spur fresh demand for nifty's 50 stocks in the morning.


The nifty 50 index moved higher on the SGX by over 36 points on Thursday's pre-market trade. India market is expected to open higher with a gap up of about 200 points of Nifty index expected around 9000 plus level.


The nifty fifty, is a well known index for the NSE and SGX composite index. The nifty is a price weighted index and includes the top 50 companies listed on both exchanges. The nifty fifty index is a very popular benchmark to measure returns on investments in Indian equities.


The nifty 50 chart is a technical chart. Pre-market trading is a term used by stock market authorities to describe stock trading that occurs before the commencement of normal trading hours in an exchange. In India, the NSE SENSEX Index futures and options contracts are used for this purpose.


The nifty 50 index chart with a falling wedge breakout is indicating a breakout at 18350 will give a jump to the 38.2% fib level of 18560 and above will next hurdle will be the falling trend line on nifty50.


Nifty 50 is an index of the top fifty stocks listed on National Stock Exchange (NSE) in Bombay, India. CNX NIFTY index represents industrial and financial sector companies listed on the NSE. It is an indicator of stock market performance in India.The nifty-fifty index market is a stock market index in India consisting of fifty stocks from large, well established and highly capitalised companies in the Indian economy. The term nifty fifty means the top fifty stocks listed on an Exchange.


Nifty 50 provides a comprehensive picture of the market based on its movement. If the nifty 50 index increases, it is taken as a good signal by investors that the first list of stocks are doing well and hence they can invest their hard earned money. This concept, i.e., first list of fifty stocks is followed in India by many banks, insurance companies and mutual funds to suggest various financial products to people.


You can use nifty 50 as a price based trading strategy which lets you trade the nifty fifty stocks efficiently. You can buy or sell nifty fifty stocks by Nifty future contract. 

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Morris - Nov 23, 2021, 10:21 AM - Add Reply

NIFTY 50 is the most important index of the National Stock Exchange of India Limited (NSE), which is located in Mumbai. It evaluates the performance of 50 blue-chip stocks, the most reliable and liquid among Indian securities.

NIFTY 50 Index

Blue-chip stocks refer to shares of the most well-recognized and trustworthy enterprises with a reputation for financial soundness. Of the approximately 1600 companies listed and traded on NSE, the 50 stocks make up an efficient portfolio since they cover major sectors of the Indian stock market like financials, energy, utilities, and technology.

Blue-chip stocks that make up the index must be domiciled in India and listed and traded on the NSE. Some of the companies that currently make up the index are State Bank of India Ltd., Bharat Petroleum Corporation Ltd., JSW Steel Ltd., and Bharti Airtel Ltd.

The components of the index are not constant; old companies are removed (if their performance deteriorates consistently), and new companies are added (once they fill certain criteria regarding liquidity, free-float market capitalization, listing history, and trading frequency) regularly.

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