MIDDAY UPDATE OF NIFTY

After regaining positive terrain for a brief period, the index  once again slipped into the red i.e.6295  in  morning trade The CNX Nifty was down 10.25 points  to 6,308.85.

Nifty may face more down fall or else may be range bound for the rest of the day

NIFTY FUTURE BUY SELL SIGNALS

Nifty Future varies with Nifty Spot level most of times..this difference is known as Premium or Discount which can be used as trading signal.

1. If Nifty future is trading higher than nifty spot, then nifty future is trading with premium.

2. Second case, if nifty future trades lower than nifty spot level, then we conclude nifty future is trading with discount.

PREMIUM= nifty future - spot nifty
DISCOUNT = spot nifty - nifty future

also these premium and discounts converges to zero at the closing date of future ie on last thrusday of every month.

At this stage you have learnt to find if nifty future is trading at premium or discount. How to use it in actual trading here are points:
1. Premium shows

 near term demand and is more likely that nifty future will trade higher in coming sessionsSo when nifty future is quoting premium over nifty spot then, nifty is buying opportunity and more trade idea will be enter long position.BUY SIGNAL

2. Discount shows

 just opposite to premium; in case of discount, supply is higher than demand. It suggests nifty future is likely to correct soon. Trading idea is short sell nifty future when future quotes lower as compared to nifty spot. SELL SIGNAL