Best Intraday trading strategies in Nifty Future

using Nifty Technical Trend

Before going to trading strategies traders should first know the
basic of future derivative trading, its lot size, expiry date etc. It is
very popular among Indian technical trader. It is most liquid
contract in Indian stock market. After trading in index future
contract trader don’t prefer to trade in stocks. So we will discuss
here how you can trade comfortably in futures and where you can
learn live strategies with accurate technical trend? We will discuss
future trading strategy with example below.

Future is a derivative contract which is derived from an underlying

asset and here underlying is Nifty. Future is available in three types-
current month, mid month and far month. It has lot size of 75 and
each month last Thursday is its expiry date.

Contract value -11500*75= Rs 862500.

Here advantage is low margin required for intraday which is around Rs
25000 is required for intraday trading and in cover and bracket order Rs
12000 is required to trade. Unlike stocks, trader can short position in
Futures and keep it till expiry. This is the biggest advantage. You can learn
Nifty Future technical trend posted daily before market open @8.45 am.
Now we will discuss taking different examples.

Example 1

To trade in index future or in Nifty, trader should have good knowledge of

technical analysis and getting daily Nifty Trend helps trader to find trend
first. After getting trend trader can get entry point and exit points. Let say
technical analysis indicating trend is positive. In micro time interval you
should search for better entry point to buy index future. Here you got 30
point and sold it. Here profit is 75*30=2250/-. Similarly if trend is
negative, you short index future to get 40 points then profit is
75*40=3000/-. Here imagine how easy it would be if you could find Nifty
Future trend before market open.
Example 2
It is used to hedge against stock delivery during bearish market. Technical trader
uses it extensively in case of Options trading to hedge their position. Analyzing Nifty
Trend generally helps trader to get trend much before and apply strategy. Let say
you have bought “CALL” option and suddenly Nifty changed its trend to down with
volatility. What should you do here? This type of trend change generally leads to
huge loss. Here you can hedge by shorting future of nifty against option to protect
principal amount and after some practice you can make profit there.

Why trading in nifty is easy compared to stock?

1. You have to concentrate in one only and easy to do technical analysis. In stocks
you have to search and do technical analysis in each stock which is difficult and
time consuming.
2. Hard to manipulate.
3. Less volatile than stocks. Thus makes it safe trading contract as compared to
stocks.
4. Lesser margin required. Due to less volatile margin requirement is between 12-
15%. In case of stocks margin can go up to 40-50%.
5. Highly liquid thus less slippage. Large volume indicates maximum technical
trader trade in Nifty.