Page 269 - IMDR JOURNAL 2023-24

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

futures. The spot index remained positive in its momentum. And Gift Nifty Futures followed

its path.
Inferences and Observations

 The correlation between the Nifty 50 spot index and Gift Nifty futures is inconsistent.

 The relationship has not changed even if the SGX Nifty is trading as Gift Nifty in India.
 Almost 95% times Gift Nifty determines the price of Nifty 50 spot opening at the start

of the session.

 RSI of both indices go hand in hand and have very similar movements.
 RSI can be used to predict a short-term correction or consolidation.

Conclusion and Summary
Proved Hypothesis:

First:

H0: There is no relationship between the opening of Gift Nifty and Nifty Index.
Second:

H1: Traders can benefit from the relationship of Gift Nifty and Nifty Index.
Third:

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

H1: Using RSI, one can predict the strength and direction of both indices.

From the study, we conclude that the Gift Nifty Futures derive the price for the Nifty 50 spot
index. At the opening of the spot market the percentage at which the Futures is quoting the

Spot index opens close to that percentage price. The studies from before that show that SGX

Nifty derives the price of the spot Index Nifty 50 are true. The relationship between the
opening of both indices is inconsistent as seen in Tables 1 and 6. Also, after the shift of SGX

Nifty to GIFT City and started trading as Gift Nifty the relationship has not changed. Even if
the trading hours of the futures have increased. Gift Nifty futures derive the price for the

Nifty 50 spot index. Although the candle body structure of Gift Nifty and Nifty 50 index
differ many times as seen in the image in the image 1 and 2, 3 and 4, 5 and 6. This can lead to

misinterpretation of the charts in technical analysis.

The RSI for both indices Nifty 50 spot and Gift Nifty futures are similar therefore it is used as
an indicator to analyze the charts of the indices. The indices are seen to react positively when

the RSI goes below the level of 40 and negatively when the RSI crosses the level of 70 as
seen in the table 1 and 6. So, the traders can use this strategy to predict the Nifty 50 spot

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