SGX Nifty, also known as a Singapore Nifty, involves taking position in the Singapore Exchange on Futures contracts . The Futures contracts settlement is based on the NIFTY settlement price in the Indian stock exchange NSE. This gives international investors the flexibility of betting on Indian markets without having to setup or register the entity with the Indian authorities. Since the SGX allows for 24 hour trading via after market trades, investors can hedge their bets at any time. Plus, it is also considered a good indicator to where Indian market will open the next day, due to this a lot of traders follow this to check how SGX Nifty is doing.
SGX Nifty is a derivative product of NIFTY 50 which is also known as Singapore Nifty. If we break the terminology in two parts
1. SGX stands for Singapore Stock Exchange.
2. NIFTY is the benchmark index of National Stock Exchange of India which represents the weighted average of top 50 Indian companies’ stocks in 12 sectors.
Singapore Stock Exchange SGX is considered as one of the leading stock exchange of Asia. SGX NIFTY is a derivative of NSE NIFTY Futures, which is quite popular in Singapore Stock Exchange. It is an attractive product for foreign investors, who want to take a position in the Indian stock market but do not want to register with India authorities. SGX NIFTY is also popular among Hedge funds who are exposed in India market and want to hedge their exposure.
So in simple terms, SGX NIFTY is nothing but the Indian NIFTY traded in the Singapore Stock Exchange.
SGX Stock Exchange also allows the investors to take the positions in different products including China A50 index, FTSE, MSCI Asia, MSCI Singapore, MSCI Hongkong, MSCI Taiwan, Nikkei 225, etc. so Foreign Institutional Investors (FIIs) can also take positions in all major indices while being in Singapore.
Singapore exchange is the leading exchange of Asia allowing investors to take positions in different products based on the futures which are traded on the exchange. Apart from India the exchange also allows one to take positions in FTSE, China A50 index, MSCI Asia, MSCI Hongkong, MSCI Singapore, MSCI Taiwan ,Nikkei 225, Strait Times etc. Thus, FIIs are able to take positions in all major indices while being in Singapore.
We bring you SGX Nifty Live Chart & Quotes to know expected opening levels of NSE Nifty before the market opens.
Indian stock market open at 9:15 AM and close at 3:30 PM while SGX NIFTY trades for 16 hours a day in Singapore Stock exchange from 6:30 AM to 11:30 PM IST. Because of the long trading hours, the impact of global events is more advanced on it. That is why it is considered as a good indicator to know where India market will open next day. Lots of traders follow it to predict the direction of Indian stock market. Intraday traders can take long or short positions in Indian stock market depending on the movement of SGX Nifty.
If you are a trader and want to know about the price movement and trends of SGX NIFTY, you can follow historic charts of SGX NIFTY. You can use weekly or monthly charts to get a detailed idea about the trends of SGX Nifty. Monthly and weekly charts give a clear idea about the major trading levels which are even followed by Foreign Institutional Investors (FIIs) and fund managers for entry and profit booking.
For long-term investment, you can use Moving Average Convergence/Divergence (MACD) Charts, Candle Stick Charts, and Relative Strength Index (RSI) to get the idea about the future prediction of SGX Nifty.
For day traders PCR (Put Call Ratio) trends and Nifty Spot Price are considered extremely reliable indicators. You can follow live PCR trends for intraday trading. Like Bank Nifty Open Interest charts you can also get SGX Nifty Open Interest live charts for intraday trading. Open Interest charts give clues about intraday support and resistance levels of SGX Nifty.
The derivative contract size of each SGX Nifty contract is:
Contract Size = $2 (USD) * Current Price of NIFTY Index futures price
AS per the norms of SGX Exchange, the minimum price movement of the SGX Nifty futures contract is US$1, which means it is equal to 0.5 in index price movement.
The contracts, which are available for trading can be divided into 2 kinds:
Most of the volumes is concentrated in the monthly contracts. Normally, the monthly contracts are available for the 2 consecutive months e.g. in the month of November, trading can happen in November Contracts as well as December contracts.
The quarterly contracts of SGX Nifty are March, June, September and December. The contracts are cash settled based on the closing price of S&P NIFTY index as on 6:00pm Singapore time or 3:30 pm Indian Standard Time (IST). The closing price of Nifty index is based on the value weighted average price (or VWAP) of the last 30 mins of trading on Nifty Futures contract and is not the final value also known as LTP (or Last Traded Price) of the NSE Nifty index.
The settlement price of SGX Nifty contract depends on NIFTY price in Indian Stock Exchange NSE. Singapore Stock Exchange allows 24-hour trading so investors can hedge their investment any time via after market trades.
Effect of long trading hours