SGX Nifty

This is the SGX Nifty hourly candlestick chart. Watch the chart before Indian Market open to know if the market is going to gap up or gap down and trade accordingly. Learn more about SGX Nifty. Read below.

What is the SGX Nifty?

What is the SGX Nifty: SGX Nifty is a derivative contract traded in Singapore Exchange. It is a derivative of the Indian NIFTY index which is traded officially in Singapore exchange. SGX Nifty (Singapore Nifty) settlement is based on the NIFTY settlement price. Individual stocks are not traded in Singapore Stock Exchange. They trade only index derivatives.

SGX Nifty trading time

As you know, Nifty is traded in the National Stock Exchange (NSE), India only for 6 hours and 30 minutes. But SGX Nifty is traded for 16 hours in Singapore stock exchange. It starts at 6:30 AM and closes at 11:30 PM as per Indian standard time. There is a break of one hour.

Advantages of SGX Nifty

Because SGX Nifty opens approximately 3 hours before the Indian market, it affects the opening of Nifty. It also helps (Foreign Institutional Investors) FIIs / (Domestic Institutional Investors) DIIs to participate in Indian Market much before the Indian market open. They also save tax in trading through Singapore Exchange. It is an excellent indicator to know where the Indian market shall open the next day. Due to this reason lots of traders follow SGX Nifty. SGX Nifty moves with respect to the Indian market and gives direction to the Nifty. It is the first indication of the initial course of the Indian stock market. The Indian stock market pre-opening session starts at 9:00 AM. But trading commences at 9:15 AM and trading closes at 3:30 PM. But, SGX Nifty enable the investors to trade in Nifty when the Indian market is closed. We often hear in TV – “Markets are likely to open green on positive Asian cues”. That is because when SGX Nifty trades with a difference to previous day Nifty close. Nifty opens gap up or gap down. Traders willing to trade in Indian market decide their entry point much before the market opens and place “aftermarket” orders. This gives them an edge in trading.

The volatility of SGX Nifty

SGX Nifty is more volatile than the Indian Nifty. The time difference causes the SGX Nifty to open before the NSE, but most traders wait for the NSE to open before they trade SGX Nifty, there is little effect on the movement of NSE Nifty. Stock exchanges performance is dependent on traders sentiment. Traders sentiment is affected by the news. Hence International market performance plays a more significant role in Nifty’s performance.