What is GIFT Nifty? Know Its Impact on Nifty 50 Options

What is GIFT Nifty? Know Its Impact on Nifty 50 Options and Indian Market

Why Every Trader Must Track GIFT Nifty Before the Market Opens

GIFT City stands for Gujarat International Finance Tec-City — India’s first operational international financial services center (IFSC). 

It is a planned smart city located between Ahmedabad and Gandhinagar in Gujarat and was developed to bring global financial services and institutions to India.

GIFT Nifty is a futures contract based on India's Nifty 50 index, traded on the NSE International Exchange (NSE IX) located in GIFT City, Gujarat. 

It serves as a benchmark for monitoring the performance of businesses listed on the National Stock Exchange (NSE) within the GIFT City framework 

Originally known as SGX Nifty, this futures contract was traded on the Singapore Exchange (SGX) from September 25, 2000. 

On July 3, 2023, it was rebranded as GIFT Nifty and its trading operations were shifted to NSE IX in GIFT City, Gandhinagar, Gujarat .

SGX Nifty has been fully replaced by GIFT Nifty and no longer trades on the Singapore Exchange (SGX). 

GIFT Nifty now operates exclusively on NSE IX, offering the same functionality—tracking the Nifty 50 index with extended trading hours 

GIFT Nifty Trading Sessions

GIFT Nifty operates nearly 22 hours a day, making it one of the most accessible global derivatives platforms for tracking Indian markets. Its trading hours are divided into two key sessions:

Session 1 – Indian Morning Session

Time: 6:30 AM to 3:40 PM IST

This session overlaps with regular Indian market hours and is used primarily by domestic and institutional investors to speculate and hedge positions.

Session 2 – Global Evening Session

Time: 4:35 PM to 2:45 AM IST (next calendar day)

This session aligns with European and US market timings, enabling foreign investors to participate and influence Indian market sentiment before the next day’s open.

These extended hours make GIFT Nifty a crucial indicator for the next day’s Nifty 50 opening, especially during global economic events or earnings seasons.

How to Access GIFT Nifty

Investors can trade GIFT Nifty through authorized brokerage firms operating on NSE IX. Trading requires a funded account in US dollars and completion of KYC formalities. 

The platform offers electronic trading, allowing for speculation or hedging against market movements

Relationship Between GIFT Nifty & Nifty 50 Options: 

How to Understand and Trade

Though GIFT Nifty and Nifty 50 Options are traded on different platforms, they are closely linked because both track the same underlying index — the Nifty 50. 

GIFT Nifty acts as a global indicator, while Nifty 50 Options are the main tool for domestic traders to speculate or hedge within the Indian market.

GIFT Nifty Predicts Nifty 50 Direction

GIFT Nifty trades before and after Indian market hours. Traders use it to gauge the likely direction of Nifty 50 for the next session. This makes it especially valuable for option sellers and buyers who plan strategies before 9:15 AM.

Example:

If GIFT Nifty is trading 100 points higher overnight, it signals strong bullish sentiment and traders may:

Sell put options

Buy call options

Plan bullish strategies like bull call spreads

If GIFT Nifty is down sharply, the reverse logic applies.

[ This is not buy and sell advice , Just explaining the logic ]

How to Trade Nifty 50 Options Using GIFT Nifty Data

Check GIFT Nifty Levels Early Morning (before 9 AM)

Compare with previous day’s Nifty close

Note the gap-up or gap-down indication

Mark Key Option Chain Levels

Identify OI build-up in calls/puts

Match them with GIFT Nifty movement

Use Option Strategies

If GIFT Nifty shows strength → Go for bullish strategies

If GIFT Nifty is weak → Use bearish or neutral spreads

Watch for Fake Moves

GIFT Nifty moves on low volume during night sessions can mislead. Confirm with price action after market opens.

Monitor India VIX

When GIFT Nifty reacts to global tension, India VIX may rise → Time to be cautious in option selling.

[ This is not buy and sell advice , Just explaining the logic ]

GIFT Nifty is especially useful for Monday trades

Because GIFT Nifty runs over the weekend (Sunday night session), it gives traders a chance to position themselves for Monday’s market.

How to add gift nifty to  watch list  ?

To add GIFT Nifty to your TradingView watchlist, follow these steps:

Just search gift nifty  it will show you

gift nifty 50 index futures =  NSEIX 

 How Traders Use GIFT Nifty for Nifty 50 Options