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Asked a question 2 years ago

Hello Traders, I am just curious when nifty goes up the stock price also go up and when nifty goes down stock price of nifty 50 stock also go down even when the stock is in uptrend or in downtrend doesn't matter . So what's point in trading stocks , its better to trade nifty 50 future because then it is ultimate deciding force. I just get confused by this because theoretically nifty is determined from stocks but in actual nifty is playing major role in determining price of stock. Please someone explain this to me.

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its very subjective... not all nifty 50 stocks behaves like nifty (index).. during trading if you have a habit of watching index( nifty or bnf) , trade those stocks which follows index behavior those stocks are either weak or strong... for Ex. if the stock is weak and nifty is falling it follows the index and vice versa.  Some stocks also follows sectorial behavior also again you should be good at technical analysis and price action/

my suggestion is filter weak (bearish)  and strong (bullish) stocks & compare their behavior with index or sector. trade strong stock when index is doing well & vice versa.

hope it helps..!!