NIFTY TRADER

1
What is SGX Nifty?

• SGX Nifty, also known as a Singapore Nifty,
  involves taking position in the Singapore
  Exchange on Futures contracts . The Futures
  contracts settlement is based on the NIFTY
  settlement price in the Indian stock exchange
  NSE. This gives international investors the
  flexibility of betting on Indian markets without
  having to setup or register the entity with the
  Indian authorities. Singapore exchange is the
  leading exchange of Asia allowing investors to
  take positions in different products based on the
  futures which are traded on the exchange. Apart
  from India the exchange also allows one to take
  positions in FTSE, China A50 index, MSCI Asia,
  MSCI Hongkong, MSCI Singapore, MSCI Taiwan
  ,Nikkei 225, Strait Times etc.

2
Advantages of SGX nifty

• The Nifty has the highest liquidity both in the
  case of futures and options categories. High
  liquidity makes it easy for investors to easily
  enter or exit their positions.
• Stocks can drop 30-50 in a single day as it
  doesn't have any filters. On the other side,
  Nifty rarely have fallen more than 5. Traders
  who positioned in Nifty have a much lower risk as
  compared to stock traders.
• For individual stocks, an investor has to track
  the companys developments closely. A close eye
  has to be kept on the sector, because many times,
  due to technological advances, a whole sector
  suffers.

3
Put Call Ratio Tracker

• High PCR means the market is bullish because the
  option writers are inclined to write puts. Low
  PCR means bearish sentiment because option
  writers are not willing to write puts but instead
  write calls.
• The put-call ratio (PCR) is a popular tool
  specifically designed to gauge the overall
  sentiment (mood) of the market. The ratio is
  calculated by dividing the number of traded put
  options by the number of traded call options. As
  this ratio increases, it can be interpreted to
  mean that the investors are putting their money
  into put options rather than call options.
• An increase in traded put options signals that
  investors are either starting to speculate that
  the market will move lower, or starting to hedge
  their portfolios in case of a sell-off.

4
Why should a trader bother about PCR and Nifty
Open Interest?

• The put-call ratio (PCR) is primarily used by
  traders as a contrarian indicator when the values
  reach relatively extreme levels. This means that
  many traders will consider a large ratio a sign
  of a buying opportunity because they believe that
  the market holds an unjustified bearish sentiment
  and it will adjust to normal soon, once the short
  covering begins. Unfortunately, there is no magic
  number that indicates that the market has created
  a bottom or a top, but generally traders will
  anticipate this by looking for spikes in the
  ratio or for when the ratio reaches levels that
  are outside of the normal trading range.
• An increasing ratio is a clear indication that
  investors are starting to move toward instruments
  that gain when prices decline rather than when
  they rise. Since the number of call options is
  found in the denominator of the ratio, a
  reduction in the number of traded calls will
  result in an increase in the value of the ratio.
  This is significant because the market is
  indicating that it is starting to dampen its
  bullish outlook.
• Regarding Nifty Open Interest, it provides good
  support and resistance levels for the series.
  Traders usually look for Nifty Open interest
  highest OI strikes. These strikes are important
  to determine support and resistance.

5
Helpful Tools to be used in trading

• Pivot CalculatorGet daily pivot values for most
  popular Nifty stocks. Use these tools to make
  your Nifty technical analysis much easier. This
  tool features Standard pivot points, Camarilla
  pivot points, Woodies Pivot points and Demark
  Pivot Points and displays all in one single view
  for ease of traders. The data is updated
  everyday.Use these One-in-All Pivot Point
  Calculator to identify Support and Resistance of
  Nifty and other major NSE stocks.
• Fibonacci CalculatorKeep Track of multiple
  retracement level with this completely
  customizable Fibonacci Calculator. You can track
  upto 4 retracement levels and even change
  retracement percentages.This calculator lets you
  keep track of important Support and Resistance
  for Nifty and any other stock. Just key in High,
  Low values and you get important Fibonacci
  Support/Resistance numbers.
• Advanced Fibonacci CalculatorKeep Track of
  multiple retracement level with this completely
  customizable Fibonacci Calculator. You can track
  upto 4 retracement levels and even change
  retracement percentages. Advanced features help
  you to identify the next Support Resistance
  levels based on your filters. It will calculate
  (and display) all the important levels and
  highlight the levels that meet your filter
  criteria.