≡ Menu

Why Nifty Is Rising Since Last One Year


Article Date: Monday, 27 August 2018

Many traders and investors must be wondering why Nifty 50 (NSE) is rising continuously since last one year. Here is the chart:

NSE 24-Aug-17 to 24-Aug-18

52 Week High and Low:

Percentage Increase (20.39%):

Some important notes before you read further:

NIFTY 50 is a diversified 50 stock index accounting for 12 sectors of the economy. It is used for a variety of purposes such as bench-marking fund portfolios, index based derivatives and index funds. NIFTY 50 is owned and managed by NSE Indices Limited (formerly known as India Index Services & Products Limited) (NSE Indices). NSE Indices is India’s specialised company focused upon the index as a core product.

Source: https://www1.nseindia.com/products/content/equities/indices/nifty_50.htm

Basically Nifty tracks the market performance of 50 largest cap companies’ stocks of india, and hence, broadly reflects the sense of the Indian economy.

Is NSE (National Stock Exchange) same as Nifty 50?

No. Nifty 50 is a collection of large cap or in other words very big companies which may not collapse. NSE is a stock exchange where thousands of companies stocks are traded – bought and sold. NSE has more than 1,600 companies listed on its platform. Nifty is a collection of 50 large companies which are traded in NSE.

Similarly BSE (Bombay Stock Exchange) is also a stock exchange just like NSE where shares can be bought and sold for companies listed there. There are about 5,000 listed companies in the BSE.

If you check the difference approximately 3000+ companies are not listed in NSE, hence not traded in NSE. Thousands of companies are listed in both BSE and NSE. If you want to buy stocks of a company listed in BSE but not listed in NSE – you have to buy from BSE exchange only and sell in BSE exchange only. You cannot buy a stock listed in BSE and sell in NSE, if not listed there.

Companies listed in both NSE and BSE can be bought from one exchange and sold in another and vice versa. But this cannot be done intraday. Means you cannot buy a share in BSE and sell in NSE and vice versa the same day. This is arbitrage and hence not allowed.

Full form of NIFTY is “National Stock Exchange Fifty”. When you want to see chart of NSE you will end up seeing charts of NIFTY everywhere. In fact you will see NIFTY being branded as The National Stock Exchange (NSE). Fact is NIFTY is only a part of NSE but index of NSE is calculated based on NIFTY, therefore when you search for chart of NSE you end up seeing chart of Nifty 50.

People get confused thinking its NSE chart. Market apps and websites show the Nifty 50 chart and brand it as NSE. It’s not wrong as Nifty 50 is most popular and most traded index derivative (future and option).

Now coming to the question of why NIFTY is rising since last one year. If the stocks in the Nifty 50 rise then NSE will also rise.

See list of stocks in NIFTY 50 that have risen the most in last one year (from Aug 2017 to Aug 2018):

Top Nifty 50 Companies Aug 2017 to Aug 2018

Source: https://economictimes.indiatimes.com/marketstats/company-true,exchange-50,indexid-2369,indexname-Nifty%2050,pageno-1,pid-37,sortby-yearlyPercentageChange,sortorder-desc.cms

Please note that by the time you see the list may change.

You can see that the top companies have risen approx 30-70%, but NIFTY has risen 20.39%. Why only 20.39%, why not 50%? Here are companies that gave a negative return in the same period in NIFTY 50:

Negative return companies NIFTY 50 Aug-2017 to Aug-2018

On top of that some companies are given more weightage in evaluating the price of NIFTY. So if all the averages are taken along with the weightages of these 50 companies you will see that it’s a 20.39% rise only.

Some more information on Nifty calculation:

Base year of NSE is 1995 and base value is 1000.20. NIFTY is calculated based on 50 stocks. List of 50 stocks can be found here.

The main difference between SENSEX and Nifty is that SENSEX is the stock market index for BSE Limited, while Nifty is the stock market index for National Stock Exchange (NSE). SENSEX is comprised of 30 stocks, while Nifty is comprised of 50 stocks.

Please like & share my blog with your friends:

Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.

My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:

What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses

You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.

This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.

This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.

What You Get?

Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.

You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.

Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).

Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.

The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.

Technical knowledge is NOT required. No need to monitor trades every second.

In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.

Since trades are properly hedged there is no stress in trading my strategies.

I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.

11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.

Read the details of the course here.

If you want to enroll for the course you can do so here.

P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.

Privacy Policy | Disclaimer

WhatsApp or Call me: 9051143004

If you have any question you can contact me.

You can read about me here and my trading mistakes here.

TheOptionCourse.com Copyright @ All Rights Reserved
Dilip Shaw, Founder

Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.

SEBI Allows Equity Derivatives Timing From 9.15 am to 11:55 pm
Some Facts About Share Market And Myths Happening In India

About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 0 comments… add one }

Leave a Comment

Social Share Buttons and Icons powered by Ultimatelysocial