Gift Nifty Intraday Live Chart
GIFT NIFTY, previously known as SGX NIFTY, is a futures contract that derives its value from the Nifty 50 Index of the National Stock Exchange of India (NSE).
This is traded on the NSE International Exchange, which is situated in GIFT City, Gujarat, India. Previously, it was traded on the Singapore Exchange (SGX). Visit GIFT NIFTY Traders Forum
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Technical Analysis of Gift Nifty Chart
What is GIFT Nifty?
GIFT Nifty is a derivative financial instrument that tracks the performance of the Nifty 50 index. The Nifty 50 is a benchmark index representing the top 50 companies listed on the National Stock Exchange of India (NSE).
Key Points about GIFT Nifty:
- Trading Location: GIFT Nifty contracts are traded on the India International Exchange (India INX), located within the Gujarat International Finance Tec-City (GIFT City) in Gujarat, India.
- Derivative Product: It’s a derivative, meaning its value is derived from the underlying asset (Nifty 50 index).
- Trading Hours: GIFT Nifty trades during the global market hours, making it accessible to a wider range of investors.
- Benefits: GIFT Nifty offers opportunities for investors to speculate on the future direction of the Indian stock market, hedge existing positions, and potentially earn profits.
The Future of SGX Nifty?
SGX Nifty, a popular offshore derivative product based on the Nifty 50 index, has undergone significant changes in recent years. Due to evolving regulatory frameworks and a strategic shift towards domestic markets, SGX Nifty has been phased out.
Key Factors Contributing to the Phase-Out:
- Regulatory Changes: India’s regulatory authorities have implemented measures to encourage domestic trading and reduce the reliance on offshore markets.
- Shift to GIFT City: The establishment of the Gujarat International Finance Tec-City (GIFT City) has provided a domestic platform for trading derivatives, including GIFT Nifty.
- Market Dynamics: Changes in market dynamics and investor preferences have also influenced the shift away from SGX Nifty.
Impact of the Phase-Out:
- Increased Domestic Trading: The phase-out of SGX Nifty has led to a surge in trading volumes for GIFT Nifty and other domestic derivatives products on the Indian exchanges.
- Regulatory Benefits: The shift towards domestic trading has aligned with India’s regulatory objectives of promoting a vibrant and self-sufficient financial market.
So, the future of SGX Nifty has evolved significantly, with a clear trend towards increased domestic trading and a focus on GIFT Nifty as a key derivative product.
What are the timings of GIFT Nifty?
Gift Nifty offers extensive trading opportunities, spanning approximately 19 hours and strategically overlapping with Asia, Europe, and US trading hours.
The first session starts at 6:30 am in the Asian time zone, lasting for 9 hours, while the second session commences at 4:35 pm, providing 10 hours of trading.
The first session concludes at 3:40 pm in the Asian time zone, while the second session extends until 2:45 am the next day, catering to investors from the United States and Europe.
This comprehensive schedule ensures that Gift Nifty accommodates a wide range of traders across different time zones.
| Trading Session | Timing (IST) |
|---|---|
| Morning Session | 6:30 a.m. to 3:40 p.m. |
| Evening Session | 4:35 p.m. to 2:45 a.m. |
What is Gift Nifty and how is it different from SGX Nifty?
While both SGX Nifty and GIFT Nifty are derivative contracts based on the Nifty 50 index, the primary difference lies in the trading venue and regulatory environment.
SGX Nifty was traded on the Singapore Exchange, an offshore platform, while GIFT Nifty is traded on the India International Exchange within the GIFT City, which is a domestic Indian financial hub.
The shift to GIFT Nifty is aimed at bringing the trading of Indian indices under the purview of Indian regulators.
| Feature | GIFT Nifty | SGX Nifty (Phased Out) |
|---|---|---|
| Trading Platform | India International Exchange (India INX) | Singapore Exchange (SGX) |
| Regulatory Body | Securities and Exchange Board of India (SEBI) | Monetary Authority of Singapore (MAS) |
| Trading Location | GIFT City, Gujarat, India | Singapore |
| Trading Hours | 21 hours | 16 hours |
| Timings | 6:30 am to 3:40 pm IST and 4:35 pm to 2:45 am IST | 6:30 am to 11:30 pm IST |
| Status | Active | Phased out |
| Underlying Asset | Nifty 50 index | Nifty 50 index |
| Purpose | Derivatives trading based on the Nifty 50 index | Derivatives trading based on the Nifty 50 index (previously) |
Where Can You Find Comprehensive GIFT Nifty Data?
Investors and other market participants can conveniently access real-time market data for Gift Nifty on the NSE IX website, www.nseix.com.
This invaluable resource empowers them to closely monitor Gift Nifty’s performance, allowing for insightful predictions regarding the behavior of the Nifty index even before Indian markets open. Stay ahead of the game and make informed decisions with instant access to this vital information.
The Rationale Behind SGX Nifty’s Move to GIFT Nifty?
The decision to phase out SGX Nifty and shift trading to GIFT Nifty was primarily driven by regulatory changes and a strategic focus on domestic markets.
Key reasons for the move:
- Market Dynamics: Changes in market dynamics and investor preferences also played a role in the decision. As the Indian economy grew and the domestic financial markets matured, there was a growing demand for trading derivatives within India.
- Regulatory Changes: India’s regulatory authorities implemented measures to encourage domestic trading and reduce the reliance on offshore markets. This shift was aimed at promoting a more self-sufficient and vibrant financial market within India.
- Domestic Platform: The establishment of the Gujarat International Finance Tec-City (GIFT City) provided a domestic platform for trading derivatives, including GIFT Nifty. This allowed Indian investors to trade these instruments within the country’s regulatory framework.
How GIFT Nifty Traded?
Gift Nifty opens doors to a world of trading possibilities for a wide range of participants. Trading members, whether from India or abroad, can engage in Gift Nifty products by securing membership with NSE IX.
Currently, over 50 brokers have established their presence in the vibrant GIFT City, and these trading members enjoy the privilege of executing trades both on their accounts and on behalf of their clients.
However, it’s essential to note that, due to regulatory considerations under the Liberalised Remittance Scheme (LRS), Indian retail investors are currently unable to access the Gift Nifty platform.
The Reserve Bank of India (RBI) prohibits the use of the $2,50,000 annual limit per person for leveraged trading activities, including futures and options, as specified in the LRS guidelines.
In a significant development, SGX IFSC India Connect, a special-purpose vehicle company affiliated with the Singapore Exchange, has initiated a process where all orders from international clients are routed to NSE IX for trading and execution.
Subsequently, the executed trades will undergo clearing and settlement through NSE IFSC Clearing Corporation (NICCL). SGX-DC assumes the pivotal role of acting as the central counterparty for SGX clearing members.
This move not only underscores the global reach and appeal of Gift Nifty but also further solidifies its position in the derivatives trading arena.
| Impact of Gift NIFTY | Benefits |
|---|---|
| Enhancing International Status | – Shift fuels GIFT City’s journey towards global recognition. |
| – Eliminates the need for embassy document attestation and post-transaction tax deductions for NRI account openings. | |
| Boosting Financial Hub Status | – Positions GIFT City as a leading international financial service center. |
| – Drives a substantial increase in trading volumes and liquidity. | |
| Attracting Investors and Traders | – Attracts a diverse range of investors, traders, and market intermediaries. |
| – GIFT City impressively amasses a banking asset book exceeding $35 billion. | |
| Government’s Ambitious Plans | – The government’s strong commitment to fostering finance and technology in GIFT City. |
| – Focus on providing financial incentives, ease of doing business, and infrastructure growth. | |
| Corporate and MNC Engagement | – Government efforts to entice corporations and multinational companies to establish their global treasury centers in GIFT City. |
| Streamlined Policy-Making | – Introduction of the International Financial Service Centre Authority (IFSC Authority) to centralize policy-making. |
| – As an IFSC, GIFT City bypasses many Foreign Exchange Management Act regulations applicable to onshore corporates. | |
| Enhanced Integration and Recognition | – The SGX Nifty’s move to India’s GIFT City deepens India’s integration into the global financial sector. |
| – Strengthens India’s international recognition. | |
| Investor Benefits | – NSE IX operations within an SEZ provide investors with exemptions from Securities Transaction Tax, commodity transaction tax, dividend distribution tax, and capital gains tax. |
GIFT Nifty Chart
A GIFT Nifty chart visually represents the price movements of the GIFT Nifty futures contract over a defined period. It offers insights into market trends, patterns, and potential trading opportunities.
Key Components of a GIFT Nifty Chart:
- Price Axis: The vertical axis shows the price of the GIFT Nifty contract at various points in time.
- Time Axis: The horizontal axis displays the time intervals, ranging from minutes to weeks.
- Candlesticks or Lines: The chart typically uses candlestick or line charts. Candlesticks provide detailed information on price action, including open, high, low, and close prices.
- Technical Indicators: Various indicators can be added to highlight trends, support and resistance levels, overbought/oversold zones, and other market signals.
Popular Chart Types:
- Line Chart: A basic chart that connects the closing prices for each time period.
- Candlestick Chart: A more comprehensive chart showing the open, high, low, and close prices for each interval.
- Bar Chart: A chart using vertical bars to depict the price range during each time period.
Advantages of Using a GIFT Nifty Chart:
- Visualizing Trends: Charts make it easier to spot upward or downward trends in the market.
- Identifying Patterns: Patterns like head and shoulders, double tops/bottoms, and triangles can signal possible price movements.
- Supporting Technical Analysis: Charts are fundamental to technical analysis, which uses past price data to forecast future trends.
- Informed Trading Decisions: By studying charts, traders can better determine when to enter or exit GIFT Nifty positions.
Decoding GIFT Connect?
GIFT Connect is a groundbreaking collaboration between the National Stock Exchange of India (NSE) and the Singapore Exchange (SGX), designed to foster deeper integration between the Indian and global financial markets.
This innovative platform enables international investors to access and trade India’s leading stock index, the Nifty 50, directly from the Gujarat International Finance Tec-City (GIFT City) in India.
Key Features of GIFT Connect:
- Unified Liquidity Pool: GIFT Connect brings together international and onshore GIFT participants, creating a larger and more liquid market for Nifty products.
- Expanded Product Offerings: Investors can access a wider range of Nifty derivatives, including futures and options, through GIFT Connect.
- Global Access: GIFT Connect allows for trading across Asia, European, and US trading hours, providing global investors with greater flexibility and accessibility to the Indian market.
- Efficient Trading: The platform leverages advanced technology to ensure seamless and efficient trading experiences.
Benefits of GIFT Connect:
- Enhanced Market Depth: The unified liquidity pool helps to increase market depth and reduce volatility.
- Increased International Exposure: GIFT Connect provides international investors with direct access to the Indian market, fostering greater cross-border investment.
- Diversification Opportunities: Investors can diversify their portfolios by incorporating Indian equities into their investment strategies.
- Economic Growth: GIFT Connect contributes to the growth and development of the Indian financial markets and economy.
In essence, GIFT Connect serves as a bridge between the Indian and global financial markets, offering a unique platform for international investors to participate in the growth of the Indian economy.
The Birth of GIFT Connect?
In February 2018, NSE and SGX found themselves in a dispute when Indian stock exchanges chose to cease providing data or granting licenses for their indices to foreign exchanges. Simultaneously, SGX made headlines by introducing single-stock futures contracts for Nifty 50 components.
Conclusion:
GIFT Nifty, a derivative product based on the Nifty 50 index, has emerged as a key player in the Indian derivatives market. Its journey began with the phase-out of SGX Nifty, driven by regulatory changes and a strategic shift towards domestic markets. GIFT Connect further strengthens this position by providing international investors with direct access to the Indian market. The future of GIFT Nifty is intertwined with the growth of GIFT City as a leading international financial hub, with continued government support and investor participation being crucial in solidifying its position.