Which ETF To Buy Today?
Selecting any ETF is much easier than selecting a normal stock. In this, you do not need much technical analysis.
We use the RSI indicator to select any ETF. It is very easy to use the RSI indicator and in ETF the RSI indicator works very well and gives excellent results.
Let us know how to select ETF using the RSI indicator.
The Strategy We Use To Select ETF To Buy
We select any ETF for buying only when some of our conditions are fulfilled.
- We look at whether the RSI indicator shows the ETF at a range of 40 or below in 1 1-hour or 1-day time frame.
- To select the ETF, we also look at the moving average of the ETF in certain time frames as shown in our chart.
- We also see which stock has more money invested in this ETF. The stock on which more money is invested is that ETF has fallen more, so if it increases then the entire ETF will also increase.
- If the ETF is related to a commodity like Silver ETF or Gold ETF, then we also see how the price of that commodity is moving in the market.
- While selecting the ETF, we also see what kind of news is going on in the market for which sector.
What Is ETF?
The full form of ETF is Exchange Traded Funds. Through this, you can invest and trade in the stock market securely.
It is much less risky than a single stock because instead of investing money in one stock, we can invest money together in the entire basket of good stocks in any sector.
The chances of loss in ETF are negligible because the money you are investing in the index is not invested in the options and futures, you can keep ETF for a long time until you get a profit.
The great thing about ETF is that you can invest in a whole basket of good stocks as per your budget. This means that you can invest or trade in good stocks at meager prices.
You can also understand that investing money in ETF means that you are investing money in the index of a sector that contains the top stocks of the sector.
You can watch the video below to know about ETFs with good examples.
Types Of ETF
Although there are many ETFs in India, here we will talk about only those selected ETFs that are popular and where you should invest or trade.
Nifty 50 ETF or Niftybees
As we know Nifty 50 is an index of India which contains the 50 best companies of India.
From this index graph, we understand whether the Indian market is going up or down. If you want to trade in it then you have to do it in options or futures.
But if you want to invest in it for a long time or want to do trading but do not want to keep a time limit, then you can do so through Nifty 50 ETF or Niftybees.
Through Nifty 50 ETF or Niftybees, you can invest money in the best 50 companies of Nifty 50 and hold it for any period. To invest in this, you need a very small amount of money and if you want, you can invest in it with any amount of money.
Bank Nifty ETF or Bankbees
Bank Nifty is an index of India’s stock market which reflects the financial market of India and the stocks of the best banks of India are registered in it.
You can invest or trade in this entire index through Nifty Bank ETF or Bankbees. For this investment or trading, you need a low budget and you can also hold these ETFs for a long time and get a good profit.
PSU Bank ETF or PSU Bankbees
PSU Bank ETF or PSU Bankbees is also a type of index in which PSU banks of India come i.e. those banks which are public sector undertakings.
Public sector undertaking banks come under PSU Bank ETF or PSU Bankbees, in which you can get good profits on a very low budget by investing money together.
PSU Bankbees or PSU Bank ETF is a very volatile ETF. If you understand this then you can make good money in a very short time by taking advantage of good market swings.
CPSE ETF
Very good and reputed companies, both new and old, have been kept in the CPSE ETF. It has stocks of 11 companies in India.
If we talk about these 11 companies then they are well-established and growing companies of India. Investing in this ETF means that as these 11 companies grow, your money will also grow. Most of these companies are public-sector undertaking companies.
Bharat 22 ETF
As we can understand from the name, stocks of 22 Indian companies come under this Bharat 22 ETF. The special thing about these stocks is that these stocks come from PSU, banks, and the private sector.
But all these 22 companies are great growing companies and these are the companies that keep getting working contracts in India this ETF is one of the fastest growing ETFs in India.
Nifty Auto ETF or Autobees
Nifty Auto ETF or Autobees contains stocks of India’s best auto companies. Investing in Nifty Auto ETF or Autobees means that you are simultaneously investing your money in India’s best auto company.
Your money will be invested in these companies according to percentage which you can see in this ETF. If it goes up then your money will also go UP and if it goes down then your money will also go down.
Nifty Pharma ETF or Pharmabees
As you can understand from the name itself, Nifty Pharma ETF or Pharmabees is an index in which the stocks of India’s best pharmaceutical companies come.
As we saw during the time of Covid 19, all the pharmaceutical stocks were giving huge profits. If someone had started investing money at that time in Nifty Pharma ETF or Pharmabees, then he has earned a lot of money today.
In most of the good pharmaceutical stocks, stock prices are quite high, so it becomes a challenge for us to make a basket of good pharmaceutical stocks.
If you want to invest money in the stocks of good pharmaceutical companies, then the best way is to invest in Nifty Pharma ETF or Pharmabees.
You will be able to invest in good pharmaceutical stocks with a very small amount of money and hold these stocks for any length of time as per your choice.
Silver ETF or Silverbees
As we all know Silver can be traded only in options and futures. But if you do not want time limits and want to trade silver for a long time or want to invest in it, then Silver ETF or Silver Bees proves to be a very good option.
As we all know Silver is known as a commodity in the stock market, so Silver ETF or Silverbees also comes under Commodities ETFs.
The special thing about Silver ETF or Silverbees is that it moves exactly according to the current price of Silver.
Meaning if the price of silver goes up then Silver ETF will go up and if the price of Silver goes down then Silver ETF will also go down.
You can buy Silver ETF very cheaply and can buy or sell it at your convenience. This is a volatile ETF in which you can also do swing trading.
Gold ETF or Goldbees
Gold ETF or Goldbees also works like Silver ETF, it also matches the current price of Gold exactly like Silver ETF matches the current price of Silver.
Just as the price of Gold goes up, the price of Goldbees or Gold ETF goes up and as the price of Gold comes down, the Gold ETF Goldbees also comes down.
Like Silver ETF, you can invest in Gold by paying less money with Gold ETF and holding it for a long time till you get your profit. Gold ETF is not as volatile as silver ETF, hence it is used only for long-term investments.
ETF Nifty Next 50 Juniorbees
Just as Nifty ETF or Niftybees contains the 50 best companies of India, similarly the ETF Nifty Next 50 Juniorbees contains those 50 companies which have not been able to find a place in the Nifty 50 index.
These are those companies that are growing very fast and want to find their place in the Nifty 50 index.
If you want to invest money in these 50 companies together and you do not have enough money to make a basket of these stocks, then ETF Nifty Next 50 Juniorbees is a very good option to invest money in these companies together on a low budget.
This is a volatile asset in which you can earn good profits in a short time even by doing swing trading.
Nasdaq ETF
The Nasdaq ETF is a type of index ETF. Through this, you can invest in the best companies in America directly from India.
For this, instead of giving money to different companies, you can invest money in Nasdaq ETF once and invest money in all the companies together.
The price of this ETF is much cheaper than other shares and it is quite volatile due to which you get good returns.
Final Verdict
As we said in the beginning there are many ETFs in India. But in this list, we have discussed only those ETFs in which you can invest because these are traded with huge amounts and the trade volume in them is also very good.
We keep updating this list frequently so that you get information about good ETFS from time to time.
Note– To select any ETF, we do technical analysis through RSI, and moving averages of different time frames. But you should also invest in ETFs using your market analysis and knowledge. We do not at all recommend that you invest in any ETF through our technical analysis, our analysis is just for your help. If you invest or trade in the stock market without using your technical analysis and market knowledge, then it can be quite risky.