Everything You Need To Know About Nifty 50 Chart

The NIFTY 50 was designed to follow the movement of the broader Indian stock market, which it does considerably. It’s the index, which can be traded on its own as an investment product and follows a market capitalization-weighted methodology with no limit on sector representation or individual company weights. It was launched in 1996 when National Stock Exchange (NSE) was incorporated and has been around ever since. Today, it’s India’s most widely used benchmark equity index – and with good reason. Here’s everything you need to know about the nifty 50 chart.

What is nifty fifty (NIFTY)

The nifty fifty indexes is an index of fifty companies listed on stock exchanges in India. The nifty fifty indexes represent approximately US$3.4 trillion ​of total market capitalization and represent about 66.8% of free-float market capitalization. These fifty stocks represent a diversified cross-section of the Indian economy with coverage across different sectors, viz., industrials, financials, telecommunication, and utilities. Since its inception in 1996, it has outperformed most equity benchmarks, including S&P CNX Nifty trend, Sensex, and BSE 200 benchmark.

Nifty 50 Chart

The conventional way to follow Nifty 50 stocks is to look at a time-series nifty 50 chart with prices plotted on an axis and time running along with another. In India, you can look at Line Charts and Candlestick Charts in two different charts. The diamond chart or candlestick charts are more prevalent in India due to their simplicity and ability to show clear trends by changing colors based on trading activity for each day. For example, a candle appears green when its closing price is higher than its opening price. However, if its closing price were lower than its opening price, it would appear red. A green candlestick indicates bulls were in control, while red suggests bears dominated trading during that period.

Why invest in nifty 50?

Investing in nifty fifty gives you exposure to India’s overall economy and markets through the top 50 companies. While investing in only one sector or industry might seem attractive due to its growth potential, diversification makes sense with all sectors growing simultaneously. This ensures you don’t lose everything if your favorite drive starts underperforming and helps maximize your profits when it does well. With an investment in Nifty-50, investors can gain exposure to multiple industries while limiting risk through diversification.


You should consider investing in Nifty 50 Index Funds because they have a distinct advantage over direct equity or equity-oriented funds of mutual funds. The Nifty 50 is constituted based on liquidity and capitalization. So, it is easy to enter and exit from the fund.

• Tax savings.

• Accumulation of wealth at an optimal time.

• Flexibility to cash out on the market and take profits whenever you want.

• Ability to diversify your portfolio across various sectors and industries.

Takeaway: For maximum benefits, it’s always recommended to familiarize yourself with the nifty 50 charts, such as the diamond chart.

Risks Associated With Investing In Nifty Fifty

However, it is also important to realize that every investment involves risk. While historically, investing in India has been safer than some other markets (such as China and Brazil), recent economic instability has increased the risk of investing in any country.

Volatility makes it harder for traders to predict when to buy or sell stocks and can result in unexpected losses if you’re not careful. If you’re looking for safe investments, it may be wise to invest more conservatively until you become more experienced and your portfolio becomes more significant over time.

However, high-risk / high-reward opportunities are also available in specific sectors, industries, or individual companies whose stock prices have not yet reflected their full potential. Just be sure to do your research before jumping into anything blindly. Also, take the help of the Nifty 50 chart for the company’s performance review.

Placing Stop Loss

If you are trading in nifty fifty, then always go for stop loss level at 15 points below the opening price or above opening price because when nifty fifty opens with red ends. Then most probably, it will close with red and vice versa, so if you want to trade in nifty fifty, try for taking a long position when nifty opens with green points but only take a short place if it begins with red ends.

Summing Up

The most important feature of the nifty fifty indexes is that it has been designed to represent all segments of the Indian economy, from manufacturing to automobiles to software services to retail trading. This makes it a perfect tool for risk management and long-term investment plans for both retail and institutional investors.

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