The recent scenario of the Indian stock market has been quite volatile. There are many that gained momentum over the past few weeks and similarly, many big players slipped their positions. In regard to nifty’s performance, the index witnessed much stability but at the end, it appeared a bit weak. Many of you would be curious about nifty.
What does NIFTY mean?
NIFTY is popularly known as the National Stock Exchange Fifty. It refers to a widely preferred benchmark index in the Indian equity markets. It was launched by the National Stock Exchange (NSE) in 1996 and essentially monitors the top 50 equity stocks listed on the NSE, on the basis of their free-flat market capitalization and liquidity.
When it comes to investing in the stock markets, most investors look forward to nifty 50 prediction to check the futuristic performance of the market and then take a decision. Investors also strive to find out how the calculation of NIFTY is done as it plays a crucial role in determining market sentiment. Just like BSE, NSE is widely considered as a reference point for anyone looking to invest in the Indian stock market.
What does an index mean?
A stock market index refers to the measurement of stock market changes, including price changes and holistic market performance. An index is made by putting together similar types of stocks in terms of industry, market capitalization, or company size.
The overall worth of these stocks forms the basis for the calculation of NSE index. Any kind of change in the value of the stocks directly affects the index value. For example, the index goes when stock prices increase and vice versa. For those looking to invest in the stock market, the best way to gauge the stock market performance is to look at NSE index. For example, following the top 50 stocks that affect market mood is known as the NIFTY 50. It aids investors in comprehending what NIFTY 50 stocks are and how they represent the general dynamics of the market. It is used by investors and financial managers to evaluate the National Stock Exchange Fifty’s portfolio base value and evaluate performance in relation to benchmark equity indexes.
How NIFTY calculation is done?
The calculation of NIFTY is done using a free-float market capitalization-weighted approach. This indicates that the weight of each stock in the index is determined by its free-float market capitalization, taking into account only shares that are traded publicly. Shares owned by the government, employees, promoters, and other strategic partners are not included.
The following is the NIFTY calculation formula:
Current Market Value divided by Base Market Capital * 100 is the index value.
Where:
The weighted total market capitalization of all 50 index businesses is known as current market value.The weighted total market capitalization of all 50 companies as of the base date is known as the base market capitalization.
NIFTY Prediction
Following the US Federal Reserve’s expected 25 basis point (bps) decrease to the benchmark interest rates, the Indian stock market indices, the Sensex and Nifty 50, are expected to open flat on Monday despite encouraging signals from their international counterparts.
The Indian benchmark index has a flat start, according to Gift Nifty’s trends. The Gift Nifty was trading at a discount of around 10 points from the previous closing of the Nifty futures, at about 24,290.
NIFTY 50 Prediction Today
At present, NIFTY 50 is witnessing an upward trend. If you have plans to hold long positions, you can continue doing so with daily closing stoploss of 24071. If Nifty closed below this level, fresh short position can be started.
NIFTY Support: 23,985 – 23,829 – 23,653
NIFTY Resistance: 24,317 – 24,493 – 24,649
FINNIFTY Prediction
Right now, FINNIFTY is trending upward. You should keep your long trades open with a daily closing stoploss of 23820. It is possible to start a new short trade if FINNIFTY closes below 23820 levels.
FINNIFTY Support: 23,743 – 23,527 – 23,326
FINNIFTY Resistance: 24,161 – 24,362 – 24,578
GIFT NIFTY Live Today (SGX Nifty)
GIFT NIFTY (formerly SGX NIFTY) refers to a futures contract given the Nifty 50 Index of the National Stock Exchange of India (NSE). It is traded on NSE International Exchange located at GIFT City in Gujarat (India). Previously, it was traded on the Singapore Exchange (SGX).
Bank Nifty Prediction
Bank Nifty reveals a Sideways to Bearish trend, trading between 50200 and 50800. Quick support is available at 50150 and 50100, with resistance at 50650 and 50700. A break above 54700 may trigger additional gains, while faces downtrend towards support levels could be excellent buying opportunities.
Bank Nifty View Levels
Bank Nifty Support: 50,150 – 50,100
Bank Nifty Resistance: 50,650 – 50,700
Bank Nifty Range: 50,100 – 50,700
BIAS – Sideways to Bearish