Page 256 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

Studying the Relationship between Gift Nifty Futures and Nifty 50 Indices on Daily
Time Frame to Predict the Prices

Vishwas Murmure* and Pranav Parad**

* Student, Department of Finance, Institute of Management Development and Research,

Pune, Maharashtra, India (E-mail: vishwasmurmure95219@gmail.com)

**Student, Department of Finance, Institute of Management Development and
Research, Pune, Maharashtra, India (E-mail: pranav.parad@gmail.com)

Abstract
This paper focuses on and explores the aspect that the relationship between Gift Nifty and

Nifty index can be used by Domestic traders to initiate trades in the first hour of the markets
when the volumes are high and many active trades for the day are placed. Earlier SGX Nifty

was the index that was referred to now trading in Gift City, as Gift Nifty. The paper includes
evaluating and back testing the relationship of Gift Nifty or SGX Nifty with Nifty 50 for the

past 1 year and comparing the results to predict the price movement. The criteria to test the

relationship is with an RSI indicator with a daily time frame. Thereof, the paper is based on
secondary data as the need for primary data is negligible in this study. The data is taken from

the Trading View website and NSE official website. In the end, the paper concludes that the
Gift Nifty derives the price for the opening of the Nifty 50 spot. The RSI indicator can be

used to predict the market direction. The opening of Gift Nifty futures and Nifty 50 spot has
no relationship. The change of SGX Nifty to Gift Nifty does not influence the relationship

between the spot and future indices.

Keywords: Gift Nifty; Nifty 50; RSI Indicator; SGX Nifty; Daily Time Frame.

Introduction

For centuries, stock markets have served a vital role in national economies, facilitating capital
allocation, fostering innovation, and reflecting a nation's overall financial health. Stock

markets have an impact the on economic growth, financial stability, and societal well-

being of a country. The stock market, buzzing with transactions and fuelled by expectations,
serves as the lifeblood of modern economies. Within its network, companies seek funding for

growth, investors chase potential returns, and the fate of nations can be reflected in the prices.
“The Indian stock exchanges hold a place of prominence not only in Asia but also at the

global stage. The Bombay Stock Exchange (BSE) is one of the oldest exchanges across the

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