SGX Nifty and its effect on Indian Stock Market

SGX Nifty, also known as Singapore Nifty is derivative of NIFTY index traded officially in Singapore stock exchange. The Future contracts settlement is based on the Nifty settlement price in Indian stock market. This gives international investors the flexibility of betting on Indian stock market without having set up or registers the entity with the Indian authorities.

Nifty trades for six and half hours on national stock exchange but NIFTY Future on SGX is traded foe sixteen hours from 6.30 am to 11.30 pm as per Indian time. Due to long hour trade it is affected by world economic news and political event occur worldwide and takes direction accordingly. So the sentiment or trend of Indian market can be derived from SGX Nifty Live charts and it opens two and half hour before Indian stock market. Here user can use our Live chart to know the opening trend of Indian market and Nifty Trend.

Example-After Indian market close if any positive development occurs in world then you can track here the effect of news on SGX Nifty in Live chart at any time and from anywhere.

Track SGX nifty before 9 am each trading day and if future is trading at let say 50 point higher than nifty future in Indian market then Indian market will open in green and gap up 50 point higher and in case of negative market you can know the Nifty Trend for today. It allows foreign investors to take a position in Indian market. India as well as Singapore is in same continent sothe trend can be correlated. As it is considered as a good indicator to where Indian market will open the next day, every trader follows this before 9 am in the morning and in evening to check how it is doing.

SGX Nifty Contract Specification

The derivative contract size of each SGX Nifty contract is as below.

SGX Nifty lot size was 10 but SGX decrease it to 2.

Contract size=$2 (USD) * Current price of Nifty index future price

So if Nifty future is trading at 8000 then contract size is $16000. While the minimum price movement of the future contract is $1 which means it is equal to 0.5 index price movements. Two kind of SGX contract is available for trading which is Monthly contracts and Quarterly contracts. But most of the volume is concentrated in monthly contracts. Normally the monthly contract is available for two serial months. Example- in the month of January trading can happen both in January and February month. The quarterly contracts of SGX Nifty are March, June, September and December like in Indian market.

The contracts in SGX nifty are settled based on the closing price of NIFTY50 Index as on 3.30 pm as per Indian standard time and 6 pm as per Singapore time. The closing price of Nifty index in SGX Nifty is like Indian stock market based on the average of last 30 minutes of trading and is not the final value of index like.

Mr. Arthur Jackson, Technical Analyst and Founder of Nifty Trend providing trading advisory services in SGX NIFTY Live chart, Nifty Trend Today, Equity, Derivatives and Commodity market. He also made a guest appearance in various workshops which were conducted on stock market awareness.

Mr. Arthur Jackson, Technical Analyst and Founder of Nifty Trend providing trading advisory services in Nifty Future Trading Tips, Nifty Trend for Today, Equity, Derivatives and Commodity market.