SGX Nifty and How its traded

Traders accross India and other countries track SGX Nifty price until mid night before US market close. The SGX nifty Index gives an idea about how the Indian Stock Market will open the next day. However, it is not always to be relied on.Sometimes,the market can totally ignore the SGX Index price and take queues from Asian counter parts. SGX nifty is traded in the Singapore stock exchange platform and its a derivative of the Nifty index. The index opens at 8:00 AM Singapore time on all working days and suggests the initial direction of the Indian stock market. Indian residents are not allowed to trade in SGX. Since SGX is essentially Nifty futures trading on the Singapore stock exchange, it is not uncommon to consider its effects on the Indian markets and vice versa. The movement of the SGX Nifty is a very good starting point for the Indian stock exchange. This is possible primarily due to the trading hours. While the Indian CNX Nifty trades for six and a half hours on the NSE (9:15 a.m. – 3:30 p.m.), the SGX Nifty trades for 16 hours a day, from 6:30 a.m. to 11:30 p.m. IST. One can only imagine the magnitude of fluctuations and economic changes this could bring about. Due to its long hours of trading, it is affected by the world economic cycles and global political events. Professional traders and Investors find it extremely useful for their hedging requirements. The direction of the SGX Nifty is a guiding light for the Indian Investors. It can be inferred that if the SGX Nifty is 30 points positive then the Indian markets may open on a higher note. Same is true for the reverse case as well. Depending on SGX Nifty, intraday traders and smart traders can either take up long positions or short positions. This is an excellent head start to the day.