Why Nifty ?

General query-

Why many traders trade Nifty (and BNF) only?

Stock futures like Tatasteel,Tatamotors,Relinfra etc has the same margin as of Nifty
and give more return as compared to Nifty?

Also,Nifty remains in the range most of the time,what we call here tuk tuk

So,why Nifty?

Pls do reply

98 Views and No One Replied..

*sigh*

Just my opinion,

1. It could be due to liquidity factor, Nifty and Bank Nifty are heavy hitters and have huge volume compared to others.

2. Comfort zone/Temperamenteople are just happy trading with one or two securities and they don't exactly feel the need to look at others.

3. Individual Nuances: Each security will have its own set of peculiarities or nuances and focusing on one or two will enable to understand it better.

Dumb Analogy for this would be: Sticking with your wife vs dumping her and looking at younger women. A known devil is better than an unknown angel.

4. Index Factor: Individual stocks will have many factors showing it's impact vis a vis the voltality. Example: Earning report could swing the stock value in 3+% percentages.

Compared to this the index is comparatively mellow as it is based on multiple sectors.

5. Manipulation: People feel individual stocks could be manipulated easily as compared to Indexes. Example: a board member knowing any new product introductions or earnings projections.

These are some of the reasons i could come up, some of thing may be wrong... others might chip in...

my observation is technical analysis best works on nifty

2-3 comments idhar bhi maar do..

actually Bro vollume and movement is which pull a trader and in case u r trapped where u can get an easy exit that thought take max traders to nifty and BN nifty usually trade 100+ point daily even on a tuk tuk day and from that we have to take only 20 points other thing is lot sizewhich was 50 earlier now 75 easy for any trader One point for broker and after that everything is ours hope u got what u need:thumb:
Jai Ran Ji Ki
I know you are not a newbie and testing intelligence of all here

1) only one chart to observe
2) liquidity
3) low margin

I don not trade stock fut but observe it in snapquote.
eg. relcap bid-ask spread is sometimes 70 paise or more whereas at the same time eq spread is just 5 or 10 paise.
so I feel liquidity is the main issue for ppl trading in nf and bnf.
I also agree to the point that technicals is more respected in nf and bnf.

JUST FOR FUN...:clap:

Nifty is Like girlfriend...
1. U can only see what she shows you.
2. Day to Day basis.
3. U have to protect yourself otherwz :rofl:
4. Will get exploded sometimes...
5. So many things to look after.
6. Will take long time to adjust with.
7. Easy to get rid offff...if do it in proper way...
8. Either you be in Profit or loss...If not taken care offfff..

Stock is almost like wife....
1. U know whats thr inside
2. Have to look after for long time(not for intraday )
3. bonus shares will be there in long run...
...

Hello eku,

As all discussed, yes it is the liquidity and technical analysis that makes people to trade in NIFTY and BNF. Also it has low volatility because Nifty is comprised of 50 stocks, so it is always diversified and carries lower risk then the individual stock. Big traders, mutual funds and FIIs concentrate on Nifty more than any other stocks. It is very important to first equip yourself with proper tools of Options trading before starting trading. Learn the standard strategies and then device your own strategies that suit your investment style, risk yearning and knowledge. You can start trading with small capital and slowly and steadily build capital from markets. Options give you big exposure with small investment only. As it is rightly said:

"One cannot jump in swimming pool without learning swimming."

GoodLuck..