The charts on this website are much better (to chart Indian stocks & indicies): http://www.icharts.in/charts.html The default chart shown is for the S & P CNX NIFTY INDEX. To view chart for BSE SENSITIVE INDEX use SENSEX as the symbol.
I have no idea about the fundamentals about NIFTY, but that looks like a typical correction to the bull market... pullback or correction with low volume. Excellent to work with using weekly charts if you are bullish, imo.
i'm looking at SGX nifty data in IB, looks like the July contract only trades a few hundred a day. is there a more active indian index contract that we can access retail from the states? the etf's aren't consistently shortable in my experience
You can get volume, contract, price,etc. info here: http://nseindia.com/homepage.htm Not sure about what IB offers. I use a bloomberg terminal which offers all cash, futs and options.
S & P CNX NIFTY INDEX is THE index for professionals. BSE futures failed sometime back and they dont trade. But S & P CNX NIFTY INDEX futures are very liquid and the tick size is 0.05. Contract size is 100. The rough value of the futures contract is INR 310,000. I trade actively around 200 lots a day. The commissions and taxes here are exhorbitant. I pay around 15 times the expenses in the US because right now living india and I have a choice right now. But looking.. thanks mishwar
thanks for the info. it sounds like you trade the NSE CNX contract. the SGX contract is priced in dollars and available through interactive brokers here, but is quite illiquid. i see the cftc approved the NSE CNX for offer in the US as of Oct 2003. Anyone aware of a broker offering this contract? i'm not finding anyone that has these so far
this is a year old, maybe barriers have changed. i see refco was on the list of FII's. it's a shame that retail is left off the list of foreign participants. i would think of every segment, retail should be welcome and could make a valuable contribution to liquidity http://www.futuresindustry.org/fimagazi-1929.asp?a=1039 Can the Rest of Us Play? Foreign entities can trade in Indian equity or equity derivative markets only if they are registered with SEBI as a Foreign Institutional Investor or as a sub-account of an FII. Who can be an FII? First, the entity must fall within a specified, but reasonably broad, group of financial institutions, including: pension funds, mutual funds, investment trusts, insurance or reinsurance companies, endowment funds, university funds, foundations or charitable trusts, and a few others. Hedge funds and CTAs are not currently on the list and thus do not have direct access. Second, the FII must meet certain fitness requirements, be appropriately regulated in their home country, and establish relationships with a local custodian and local bank. While corporates and individuals cannot be an FII, they can be a sub-account of an FII. As of the end of 2004, there were 637 FIIs and 1,785 sub accounts of FIIs. Foreign broker-dealers and futures commission merchants can gain access to India's equity derivatives markets by becoming a locally incorporated broker-dealer. More than a dozen foreign brokers have taken the second route and have set up local subsidiaries and joined the exchange, according to NSE. They include ABN Amro, Citigroup, CLSA, Fortis, HSBC, JP Morgan, Merrill Lynch, Nikko Capital, Refco and UBS. As local brokers, these entities can execute orders for both local customers and FIIs and engage in proprietary trading. Foreign individuals or corporates can gain access by having a sub account with an FII. There is one other strategy by which interested foreign parties have gained exposure to Indian equity derivatives without becoming an FII or trading through an FII subaccount, and that is through an over-the-counter instrument known as a participatory note or PN. The process is simple. An FII takes a position in the Indian market, then issues a PN with the same economic value to an offshore investor. This type of "back-to-back" transaction accounts for a significant portion of the total foreign investment in Indiaâs equity markets, with estimates ranging from 20% to 25% of total FII activity. In January 2004, SEBI issued an order permitting the sale of PNs only to entities meeting certain criteria related to their financial strength and home-country regulation. In practical terms, almost any major financial institution can use this route to gain exposure to the Indian equity markets, according to brokers active in this business. It should be noted that the Commodity Futures Trading Commission has not yet provided a Part 30 exemption to any exchange in India. Part 30 exemptions, which greatly facilitate cross-border trading by permitting members of foreign futures exchanges to solicit U.S. customers, have been granted for most of the major market centers, including Australia, Brazil, Canada, France, Germany, Hong Kong, Singapore, Spain and the U.K. (In the case of Japan, the Part 30 exemption applies only to the Tokyo Grain Exchange.) The CFTC will grant a Part 30 exemption only if the foreign regulator meets certain requirements and shows that it exercises "equivalent" regulation. In the case of futures on physical commodities, neither FIIs nor even domestic financial institutions are currently allowed to participate. But the rebirth of the commodity markets is recent, reforms are being done gradually, and there have been discussions about loosening these restrictions. Can Indians play in our markets? Until recently, the government imposed severe restrictions on outbound investment because of a shortage of foreign reserves. India now finds itself in a completely different position with $125 billion in foreign reserves, the fifth largest in the world. So last year the Reserve Bank of India, the countryâs central bank, raised the amount of funds that Indian citizens could invest abroad to $25,000, which is three times the average middle class salary. Should we want to get in? In most emerging markets, the international investor finds relatively illiquid and unsophisticated securities markets. Not so in India. Markets in equity derivatives are tight, liquid, and transparent. There are sound clearing and settlement processes, topped off by active markets in a range of modern products like stock futures, stock options, index funds, ETFs, index futures and index options. The spot and derivatives markets have a single regulator, SEBI. And the Indian economy is dynamic. So as barriers continue to fall between the two countries, India should prove an increasingly interesting market in which to participate.