Stock and index futures · NSE
Stock futures and chart signals: what the contract adds to the trade
A futures contract is an agreement to buy or sell the underlying at a set price on expiry, traded long before that date. You post a margin, not the full value, so one lot controls far more stock than the cash in your account. That is why a 2 percent move in a share can mean a much larger swing in your capital, in either direction.
WizeBuySell does not have a strategy built for futures. What it has for F&O stocks is Futures & Options Buying in Shares, a TradingView strategy on the 15-minute chart that gives direction on the stock and labels a CE or PE strike once the trend confirms. This page covers how futures behave, and what that means if you take the direction from that chart and trade the stock future instead.
Premium, discount and the basis
A stock future rarely trades at exactly the share price. The gap is called the basis. Most of the time the future sits at a small premium, roughly the cost of carrying the position until expiry. Near a dividend, or when traders are heavily short, it can slip to a discount.
The basis shrinks toward zero as expiry approaches, because on expiry day the future settles against the share price. For a chart reader this matters in one practical way: a level drawn on the stock chart is not the same number on the futures chart. With the share at an illustrative ₹1,400, the current-month future might trade a few rupees above it, and that difference changes every day.
Futures and options on the same F&O stock
Both are traded in the F&O segment on the same underlying. They respond to the same chart move very differently.
| Stock future | Bought option (CE or PE) | |
|---|---|---|
| Move against you | Loss grows point for point until you exit | Loss limited to the premium paid |
| Time | No time decay; a flat stock costs little | Premium decays every day the stock stays flat |
| Money blocked | Margin, with daily mark-to-market | The premium, paid up front |
| Tracks the chart | Almost one to one with the share, plus the basis | Depends on strike, time left and volatility |
| Overnight gap | Full gap lands on the position | Hurts, but capped at the premium |
Futures & Options Buying in Shares labels option strikes. A trader who uses the stock future takes on the left-hand column's risks.
What a Futures signal looks like
| Symbol | View | Entry | Target | Stop-loss | TF | Time | Status |
|---|---|---|---|---|---|---|---|
| RELIANCEBuy 1400 CE · ST confirm | Bullish | 1,402.50 | 1,416.00 | 1,391.00 | 15m | 10:00 | Target hit |
| SBINBuy 850 PE · ST confirm | Bearish | 848.60 | 840.50 | 855.00 | 15m | 11:15 | Target hit |
| HDFCBANKBuy 1900 CE · ST confirm | Bullish | 1,906.00 | 1,922.00 | 1,893.50 | 15m | 12:30 | SL hit |
| ICICIBANKBuy 1420 PE · ST confirm | Bearish | 1,421.00 | 1,408.00 | 1,431.50 | 15m | 14:15 | Active |
Illustrative rows that show the format, including a stop-loss hit. Not a track record. See how each level is calculated.
Using the F&O stock signal with a future
The strategy reads the 15-minute chart of the stock. When the trend confirms it prints BUY CE or BUY PE with a strike and "ST confirm", books half the position later, trails the rest, and marks an expiry exit if the trade is still open at expiry. A BUY CE is a view that the stock goes up; a BUY PE, that it goes down.
A trader who prefers the stock future can take the direction from the same chart: long the future on a BUY CE, short it on a BUY PE, and follow the half exit and trailing exit on the stock chart. The strategy does not print a futures quantity or a futures stop-loss. Position size must suit futures risk, which is open-ended, not the capped risk of a bought option.
Rollover week, one step at a time
Stock futures expire monthly. Check the current NSE circular for expiry dates.
- 01
Volume migrates
In the last days before expiry, open positions move from the current contract to the next month. The near contract gets thinner and its spread widens.
- 02
The basis collapses
The current contract converges on the share price, while the next month trades at its own premium. The two can differ by several rupees on the same stock.
- 03
Decide before expiry
Close the position or roll it into the next month yourself. Nothing on the chart rolls it for you.
- 04
Re-read the levels
After a roll, recompute your stop-loss and exit prices on the new contract, since the basis has changed.
Overnight gaps and thin contracts
NSE closes at 3:30 pm and global markets keep trading. Company results, rating changes and overnight news all land in the next opening price. A long future carried with a stop-loss ₹15 below can open ₹40 lower, and the loss is the gap, not the stop-loss. Stock futures gap harder than index futures because company news hits one name at full force.
Liquidity is uneven down the F&O list. The largest names trade actively all day; lower down, a stock future may print a handful of trades a minute, with a spread that takes a real bite out of the move you expect. Read the signal on the share's own chart, which is far more liquid, and check the futures bid and offer before you place anything.
Margin, mark-to-market and honest limits
Your broker blocks margin for each lot and settles gains and losses daily. If a position moves against you, you may have to add money the same day or have it squared off. Margin rates change, so check the current NSE circular and your broker. Keep unused cash in the account for anything you carry overnight.
The strategy does not know your lot size, margin, basis or account balance. It does not roll contracts or warn you about expiry. In sideways markets it whipsaws like any trend method, and with futures size a run of small losses adds up quickly. We publish no accuracy figure, and nothing here is investment advice.
Questions about Futures
Does WizeBuySell have a strategy for Nifty or Bank Nifty futures?
No. The Nifty and Bank Nifty strategies label options: CE or PE buys, option selling with a hedge, and debit spreads. There is no strategy written for index futures. For stocks, Futures & Options Buying in Shares gives direction on the 15-minute chart of F&O stocks and labels a CE or PE strike.
Can I trade the stock future instead of the option the label names?
You can take the direction from the same chart, and some traders prefer futures because they have no time decay. But the strategy labels option strikes, not futures quantities, and a future's loss is not capped. Size the position for futures risk, place your own stop-loss order, and remember the basis between the share and the future.
Should I read the signal on the futures chart or the stock chart?
The strategy is meant for the stock chart, which is more liquid and has a continuous history. Futures charts end at every expiry and jump at each rollover. If you execute in the future, convert your exit levels by the day's basis rather than typing a stock-chart price straight into a futures order.
What happens to an open position at expiry?
On the options side, the strategy marks an expiry exit if the trade is still open, since a stock option cannot be carried past expiry. A future expires too. If you hold one, close or roll it yourself before expiry and re-read your levels on the next-month contract, because its basis differs.
How much margin does one stock futures lot need?
It depends on the stock, the lot size and the margin rates in force, and all of those are revised. Check the current NSE circular and your broker's margin calculator before you trade. Keep extra cash in the account as well, since losses on a futures position are settled daily.