What is the SGX Nifty index? and how does it affect the Indian stock market?
SGX Nifty index is a derivative of the NIFTY 50, often known as the Singapore Nifty.
The Singapore Stock Exchange is abbreviated as SGX.
NIFTY is the National Stock Exchange of India’s benchmark index, which reflects a weighted average of the stocks of the top 50 Indian firms in 12 categories.
The Stock Exchange of Singapore The Singapore Exchange (SGX) is one of Asia’s most important stock exchanges. The SGX Nifty index is a derivative of the NSE NIFTY Futures, which are quite popular in Singapore. It’s a tempting offering for international investors who want to engage in the Indian stock market but don’t want to register with the Indian government. Hedge funds that are exposed to the Indian market and seek to hedge their exposure use SGX Nifty index. So, to put it simply, SGX NIFTY is the Indian NIFTY that is traded on the Singapore Stock Exchange.
Foreign Institutional Investors (FIIs) can also take positions in all major indices while in Singapore, since the SGX Stock Exchange permits them to do so in a variety of products such as the China A50 index, FTSE, MSCI Asia, MSCI Singapore, MSCI Hongkong, MSCI Taiwan, Nikkei 225, and so on.
How Indian trader using SGX Nifty index to predict Indian Nifty?
As previously stated, the SGX Nifty is useful in anticipating and observing the behavior of the Indian Nifty. The Indian Nifty and the SGX Nifty have a two-and-a-half-hour time difference, with the Singapore market opening two and a half hours before the Indian market. This allows investors to keep an eye on the SGX nifty in order to keep track of market changes and how the whole trading process is progressing.
Investors may get a sense of the Indian market and if it will start with favorable or negative outcomes by watching this. Those who are hesitant to engage in the Indian market can invest in SGX and monitor the SGX Nifty index to have a better understanding of the Indian nifty and stock exchange platform.
Although this is a simple approach to assess the Indian market and consider your options, not all of the results these investors receive are reliable and are influenced by the many economic aspects that exist in both nations. Both India and Singapore have quite diverse economic systems, which has a different but significant impact on market behavior.
Indian Nifty and the SGX Nifty are equally essential since their movements are influenced by one another, and you can’t talk about one without discussing the other. Everyone who wants to get into the stock market and start trading like a pro must first learn and understand Nifty and SGX Nifty words, as well as a slew of other financial phrases that are regularly used and play key roles in the stock market.
For Intraday Traders
PCR (Put Call Ratio) trends and Nifty SpotPrice are highly accurate indicators for day traders. For intraday trading, you may monitor live PCR trends. You can receive SGX Nifty Open Interest live charts for intraday trading, just like Bank Nifty Open Interest charts. Open Interest charts provide intraday SGX Nifty support and resistance levels.