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Gift Nifty: Everything You Need to Know

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Gift Nifty is a reasonably new name that one has heard in India’s financial world. It comes from the Gujarat International Finance Tec-City (Gift) Index. It tracks how stocks listed on the National Stock Exchange (NSE) perform within the city, a special economic zone evolving into a global financial center. Read on to learn in detail what Gift Nifty is and its other related aspects.

What is Gift Nifty?

The Gift Nifty is a type of futures contract linked to India’s Nifty 50 index. Previously traded on the Singapore Stock Exchange (SGX), it now operates under the rebranded name. It has shifted to the NSE International Exchange (NSE IX) in Gift City, Gandhinagar in Gujarat. 

All the contracts related to SGX Nifty, valued at $7.5 billion, are now being traded on the NSE IX instead of the SGX. NSE IX, a part of the National Stock Exchange (NSE), now offers four financial products: Gift Nifty 50, Gift Nifty Financial Services, Gift Nifty Bank, and Gift Nifty IT derivative contracts.

While big investment groups use the Gift Nifty to protect themselves from risks in the Indian stock market, traders use it to predict where the Nifty 50 index might go.

Gift Nifty Performance

The Gift Nifty’s performance closely mirrors that of the Nifty 50, reflecting the overall sentiment of the Indian market. Before July 2021, SGX tracked this performance. The primary differentiators now are Gift Nifty timings and regulatory aspects. At Gift Nifty, one trading session lasts from 6.30 am to 3.40 pm and another from 4:35 pm to 2:45 am. These hours are longer than the previous SGX Nifty trading hours, which used to run for 16 hours, from 6:30 am to 10:30 pm. The new timings coincide with trading hours in Asia, Europe, and the United States.

Gift Nifty includes companies that do business in Gujarat’s Gift City. This special focus is essential for traders who want to know about this special economic zone. As Gift City becomes more critical, traders can learn how well companies in this region are doing. 

Day Range

Like any financial instrument, the Gift Nifty exhibits a daily “range,” representing the highest and lowest prices it trades at throughout the trading session. This range provides valuable insights into market sentiment and volatility. A wide range suggests high investor activity and potentially more significant swings in price, while a narrow range indicates a calmer market with smaller price movements.

Gift Nifty Chart

Visualizing the Gift Nifty’s performance becomes important through the charts that track the index’s price movements over time, allowing investors to identify trends, patterns, and potential support and resistance levels. By interpreting the Gift Nifty chart, seasoned traders can make informed decisions based on technical analysis.

Gift Nifty Technicals

Technical analysis is essential to understand Gift Nifty’s movements. The chart, showcasing the index’s price over time, reveals patterns and trends. Moving averages like EMAs (Exponential Moving Averages) and SMAs (Simple Moving Averages) provide insights into momentum and support levels. They represent the average price over a set period, filtering out short-term fluctuations and highlighting underlying trends. While SMAs offer a simple average, EMAs give more importance to recent data, making them more responsive to changes in price. Identifying these technical patterns can equip investors with valuable trading signals. 

Gift Nifty Resistance and Support

The support and resistance (S&R) levels help find the target price on the Gift Nifty index. These denote particular prices on the chart where a significant amount of buying or selling is anticipated. The support price signifies a level where more buyers are expected than sellers, while the resistance price indicates a level where more sellers are expected than buyers. Identifying these levels through technical analysis can help investors enter or exit positions opportunistically.

Conclusion

Gift Nifty is an avenue for domestic and global investors. This transition and the growth of Gift City could lead to forthcoming market advancements and efforts to connect global markets with the Indian capital markets. The longer trading hours will also improve accessibility for investors in various time zones. By understanding Gift Nifty’s mechanics, performance, and technical aspects, you can confidently navigate this dynamic market and benefit from its growth potential. 

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  1. What is Gift Nifty?

    Gift Nifty, formerly called the SGX Nifty, is a derivative contract that mirrors the performance of the Nifty 50 index. While SGX traded on the Singapore Exchange, the Gift Nifty is now located at the International Financial Services Centre (IFSC) in Gift City, Gujarat.

  2. How to trade in Gift Nifty?

    Traders usually track the Gift Nifty movement to anticipate a gap-up or gap-down opening before the Indian market begins trading. However, some advise against solely relying on Gift Nifty to predict Nifty 50 behavior as they function differently on distinct exchanges.

  3. Where can I see Gift Nifty?

    You can check Gift Nifty contracts on the NSE IX website. You can track other contracts besides the Gift Nifty 50, such as Gift Nifty Bank, Gifty Nifty Financial Services, and Gifty Nifty Derivatives contracts.

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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.

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