Page 264 - IMDR JOURNAL 2023-24

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

Gift Nifty derives from the price of the Nifty spot. We can say that the sentiment of Gift

Nifty determines the sentiment of the spot index. In the table, we observe that the openings
differ 17 times out of the 32 entries, which is 54 percent of the total. The RSI also remains

the same for both indices. The RSI price is going hand in hand. It is seen that when the Gift
Nifty and Nifty both cross the overbought levels of 70, they immediately consolidate or fall.

So, if risk is taken one can initiate a trade using this strategy.
When compared we can see that the size and body of candles of both the indices are changing

and varying. As the Gift Nifty is trading longer hours the gaps that are seen in the Nifty chart

are not seen in the Gift Nifty chart. As Nifty 50 spot opens at the trading price of the Gift
Nifty.

Observe the Gift Nifty Chart from 9 March to 11 March, the candle structure.

Gap
Previous %
Date Opening Closing RSI Up/
Closing Change
Down
09-03-2023 17799 17618 17800 -1.02% 45.68 -1
10-03-2023 17630 17437 17618 -1.02% 40.66 12
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Table 2: Gift Nifty on the 9 and 10 March 2023 (Primary Source)

09

10

11

Image 1 (Primary Source)

Previous % Gap Up/
Date Opening Closing RSI
Closing Change Down
09-03-2023 17772 17589 17754 -0.93% 46.24 18
10-03-2023 17443 17412 17589 -1.00% 41.14 -146
Now observe the candle structure of the Nifty 50 chart of the same date.

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Table 3: Nifty 50 spot on the 9 and 10 March 2023 (Primary Source)

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