Page 260 - IMDR JOURNAL 2023-24

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

Data Collection

The data is compared using the Trading View app, where both charts are available for
analysis for accurate data and consistency. The frequency of comparison is a daily time frame

chart. The candles having long bodies and high percentage change are studied to make use of
the volatility. RSI is applied to the chart to deepen the analysis and get clarity on the

relationship of both indices. Time series analysis, using high-frequency intraday data to
analyze trends and seasonality in both indices and their interactions over time. Here we are

looking at daily opening and closing, candle structure, and candle size. The data collected is

secondary as there is no source of primary data. The use of NSE and Trading View app is the
source of data.

Research Hypothesis

First:
H1: A corelation exists between the opening of Gift Nifty and Nifty spot index.

H0: There is no correlation between the opening of Gift Nifty and Nifty spot index.
Second:

H1: Traders can benefit from the relationship between Gift Nifty Futures and Nifty Index.
H0: Traders cannot benefit from the relationship between Gift Nifty Futures and the Nifty

Index.

Third:
H1: Nifty index can be predicted from Gift Nifty using the daily candle.

H0: Nifty Index cannot be predicted using the daily candle from Gift Nifty.
Forth:

H1: Using RSI, one can predict the strength and direction of both indices.
H0: Using RSI, one cannot predict the strength and direction of both indices.

Research Limitation

The research is based on similar data but the open time of both the indices is different. The
nifty 50 is open for 6 hours and Gift Nifty is open for almost 19 hours. Therefore, the

volumes on both the indices differ a lot and the size of the candle.

The Gift Nifty is open on weekends, and therefore in data collection, there is a difference in
days of Nifty 50 and Gift Nifty. There are more than 7 days of data collected in Gift Nifty

versus the Nifty 50 spot.
The limited timeframe of the data might not be representative of the long-term relationship

between the indices. Other factors like news events, sector performance, and global market
movements can also influence the price movements of both indices are not considered in this

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