So today’s topic is 10 Best Ways to Predict Nifty i.e. when will Nifty go up and when will it go down. What will happen to Nifty the next day, how to know how many points will Nifty go up or down tomorrow?
Yes it is true that it is very difficult to predict 100% correctly how much Sensex and Nifty will go up or down.
But there are some methods through which many people are able to predict Nifty almost accurately.
Today we will tell you in detail about some such methods.
To know when Nifty will go up or down, you have to analyze the market direction closely. Also, using some technical indicators, support resistance, moving averages, chart patterns, option chain data, put call ratio, etc., how much Nifty will go up or down can be predicted tomorrow.
As you know that;
Nifty50 is an index of the top 50 companies of India, whose movement will be in which direction the next day depends on the performance of these 50 companies.
But apart from this, many global factors also play a role in moving the Nifty chart up and down, such as some bad news coming in the global market, which creates negative sentiment among the investors and its effect is visible on the stock market the next day.
But in the meantime some people make profit of lakhs of rupees daily by predicting Nifty, so how are these people able to do this and how can you do this?
Of course anyone can do this, but for this you need to have a little knowledge of technical analysis and trading. Also, a little bit should be known about derivatives such as futures options, put call ratios, charts, and different indicators.
Look, no one can guarantee that the price of Nifty will increase or decrease tomorrow, traders only make an estimate of the rise or fall of Nifty through certain parameters, which gives a fairly accurate idea of the performance of Nifty.
Today we will talk about some such parameters, knowing and learning about which you can find out for yourself how Nifty will be tomorrow, how much will it increase or how much will it go up.
So let us now discuss about all the points one by one.
How to predict Nifty
View NASDAQ’s Chart
NASDAQ is the IT index of the American stock market, by looking at the performance of Nifty IT in India, it is known that India’s top IT companies like; How TCS, Infosys, Wipro etc are performing
In the same way, by looking at the chart of Nasdaq in America, the performance of the technology companies involved in it like Apple, Microsoft and Google etc. is revealed.
It comes to you that after seeing the chart of nasdaq, how can we find out how the performance of Nifty will be next day in India?
So see, you will know that the movement in most of the world’s markets comes due to the American market, which affects the European market the most and then the Asian market.
There are two main indexes in the US market, the Nasdaq and the Dow Jones, of which we track the Nasdaq more closely because one has 100 stocks in the Nasdaq and the other has the highest weitage of IT stocks and financial stocks.
Therefore, the NASDAQ represents the American market more clearly than the rest of the index.
Now some people will question that why we did not take S&P 500 because it is also an index of America. So look, we didn’t take it because there are 500 stocks in it which get over-diversified a lot and don’t show a clear picture of the market.
Whereas the NASDAQ index is an index between the dow jones (it has 30 stocks) and the S&P 500, which gives a fairly accurate prediction of the US market.
Keep an eye on the S&P Vix
S&P Vix is a volatility index that shows how the market is among investors, that means if there is an atmosphere of fear in the whole market and investors are selling in panic then S&P Vix goes up.
Conversely, when the market picks up, the S&P Vix starts going down, which means that the greed among the investors increases.
You have seen that this index moves upside down from the market, that means if the market rises then this index will go down and when the market is down then this index starts going up.
By watching S&P Vix, you get to know how is the sentiment among the investors in the American market.
Because global markets are directly and indirectly linked to a large extent.
View support and resistance levels of Nifty
Trading cannot happen without looking at support and resistance in technical analysis.
If you see the chart of nifty then you need to know its support and resistance levels for which you can use different trendlines and what will be the next target of nifty.
View Banknifty Chart
The contribution of Bank Nifty in Nifty index is 30-40%, that is why Bank Nifty has a big role in going up or down of Nifty and that is why it is very important to see the chart of Bank Nifty for doing nifty prediction.
One thing is clear that if bank nifty falls then nifty will also fall and if bank nifty goes up tomorrow then there are many chances that tomorrow nifty will also go up, so while analyzing the market, definitely check the chart of banknifty.
Keep an eye on Indiavix
Just as S&P Vix is the volatility index of America, similarly Indiavix is the volatility index of India which reflects the greed and fear sentiments present in the market. This index gives you an idea or indication to a great extent as to where Nifty or Sensex can go on the next day.
Keep an eye on the SGX Nifty
Most of the traders in India look at SGX i.e. Singapore Nifty to estimate Nifty. Even before the market opens in India, you can see the chart of sgx nifty, which gives you an idea that when the Indian stock market will open at 9:15, you will predict the same movement you have seen in Singapore Nifty.
Singapore Nifty has a very deep impact on the Indian stock market, so you must read this post.
Reading Option Chain Data
Do you do option chain data analysis by visiting the NSE website? If not then you are one step behind in the journey of nifty prediction.
I can understand that when you see the data of Option Chain for the first time, one will get nervous but once you learn to read it, it will seem quite simple to you.
With the help of option chain data, you can find the support and resistance levels near Nifty, although you can also find support and resistance through the chart, but the support and resistance levels that come out according to the option chain data are more accurate. .
Apart from this, option chain data is also used to create next day trading strategy.
Also, this data also helps you to know whether you have to book or hold the option till the expiry of the option if you make profit from the trade, that is why it is very important to read the option chain data while predicting nifty.
Seeing the put call ratio
Put Call Ratio is also called PCR in short and by looking at this PCR data, people try to find out the direction of the market because PCR data shows you the buying and selling environment in the market.
Means which of the buyers and sellers is more dominant in the market, if the buyers are more dominant then the market will go up and if the sellers dominate more then the market will go down.
Put and Call are both part of options trading. If you buy Put then you are betting on the market going down that means if the market falls the next day you will make profit and if the market goes up you will lose.
Similarly, if you buy a call option, it means that you are betting on the rise of the market and the next day if the market goes up then you will make a profit.
In intraday, most people use PCR data only, which has an accuracy of about 70%.
That is why the data of put and call ratio is very important to know how the market will be tomorrow.
Seeing Price Action
As the name suggests, you have to take actions by looking at the price, that means trading on the basis of price is called price action trading.
It is considered very important to see it in the market because many times the sentiment in the market is different due to some news, while the price is telling something else, so it has been seen mostly outside that the decision taken on the basis of price is mostly correct. Is.
By trading the price action, you can also predict the movement of Nifty to a great extent, that is why it is very important for every investor trading in the stock market to understand the price action.
Using Moving Averages
Moving average is an indicator that shows the movement of the market, it tells how much the market can go up or go down in a particular time.
Different people use different moving averages. While trading, if someone uses 50 day moving average, then it is not certain of 20 day moving average, meaning you can take the moving average.
If you look at the moving average of Nifty then you will get an idea of how much Nifty can go up or down in 1 week or 1 month.
WHAT DID YOU LEARN TODAY
I hope you have liked my article on 10 Best Ways to Predict Nifty. It has always been my endeavor to provide complete information about the future of stock market to the readers, so that they do not have to search any other sites or internet in the context of that article.
This will also save their time and they will also get all the information in one place. If you have any doubts about this article or you want that there should be some improvement in it, then you can write comments below for this. this is only for educational purpose.