Nifty Index is an index where you can judge the movement of the stock listed in the nifty 50. Nifty index moves according with the top class stock movement intraday or in a daily basis.
Those who are new to the stock market might been in a confusion that how index moves high and low or you can say ups and downs index movement. The fact is its an instrument where the peoples used to buy or sell index for the short term profit and sometimes it incurred loss if your prediction went wrong.
Now again you might be in a confusion that how can prediction goes right or wrong. Suppose if you think that today market might go up few speculator used to buy index future contracts for index. On the contrary, now Corona Virus has affected the global stock market brutally. You can say in 2008 there was a tsunami in stock market due to illiquidity deposits funds in US which creates fears among the world. This corona virus slow down GDP and global economy for which the stock index crashed severely. Taking this in an advantage few speculator sell future index contracts to reap profit of downfall.
For example: Nifty index was trading all time high near 12400 on Mid February 2020 even it kept hold on March 2020 first week trading session. But when Corona take place fear gathers among investor they started selling their stocks or you can say booking their marginal profit to prevent severe loss. In which Nifty index fell upto 7500 from Nifty 12400 Levels. I think downside is still pending which will hover near 5000 Nifty levels. As our economy slows down and India is in 21 days lockdown pressure built up to prevent corona virus spread among nation.
I witnessed these fall for next decade which i missed the crash on 2008. However investing in stock market is subjected to market risk. Study company before you invest in Corporate Shares.
And NiftyIndexShare.com is the site which will try to reach with an easy translation to make you understand. I will try my best to update business news , stock index stradegy, intraday stock picks etc. Kindly subscribe for more details. If you want to open a demat accout you can call us on 7008946678 or email query at [email protected]
Mar 29 2020