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NIFTY 50 Trading Strategy | Nifty Shop
Jul 6, 2025
A lot of new members in our FabTrader community have been asking me how to get started with trading — especially without diving into high-risk futures and options. So, in this video, I’m sharing a strategy I personally use: the NIFTY SHOP strategy. ✅ Built around NIFTY 50 stocks ✅ Simple rules, executed in 10 mins a day ✅ No stop loss. No complex indicators. This is not just theory — I’ve run this in my live account for over a year with consistent results. And the best part? It helps you grow wealth slowly, steadily, and with far more peace of mind than high-risk F&O plays. nifty shop strategy, nifty 50 trading, best strategy for beginners, low risk trading strategy, fabtrader, mahesh chander kaushik, nifty 50 stocks, swing trading strategy, no stop loss trading, portfolio building, best indian stock strategy, long term trading strategy, build wealth trading, trading for office goers, capital protection strategy, consistent trading returns, nifty 50 investing, stock market india, beginner friendly trading 💬 Have questions? Drop a comment below! If you found this useful, Like 👍, Share 📢, and Subscribe 🔔 for more Python and trading-related content! 🚀 I would love to hear from you! 😊 Email : [email protected] Website: https://fabtrader.in/ Telegram Channel : https://t.me/fabtraderinc X / Instagram : @Iamfabtrader Reach to me directly on Telegram : https://t.me/Iamfabtrader Support This Community 👍
View Video Transcript
0:00
Hello everyone. Welcome to Fat Trader.
0:02
I've been meaning to have this
0:03
conversation for a while now because
0:05
over the past uh few months, I've been
0:07
getting a steady stream of messages from
0:09
beginners, part-time traders, and even
0:11
some long-term investors all asking the
0:13
variation of things the same question,
0:14
which is, I want to start trading, but I
0:16
don't know, you know, I don't want to
0:17
blow up my account. So, how do I begin
0:19
safely? Right? It's actually a really
0:21
good question, and I'll be honest, I
0:22
wish more people asked it. Right?
0:24
Because what I'm seeing a lot these days
0:25
is people are jumping straight into
0:26
high-risisk strategies. They're trading
0:28
weekly options, trying complex spreads,
0:30
following the the so-called gurus who
0:32
post huge profit screenshots and never
0:33
talk about, you know, the risk or the
0:35
draw downs associated to it. And the sad
0:37
part is many of these folks haven't even
0:39
built the basics yet, right? No clear
0:40
framework, no position sizing, no risk
0:42
management. Usually just wibes and
0:44
volatility. If that sounds like you,
0:46
first of all, don't feel bad. We've all
0:47
been there. The market is designed to
0:49
pull you uh you know uh in with the
0:50
promise of fast money. But what it
0:52
doesn't tell you is that slow, steady
0:54
money is often more powerful and that's
0:56
more sustainable, right? And that's
0:58
exactly what I wanted to talk to you
0:59
about today. Uh a strategy that I've
1:01
personally been running for over a year
1:02
now. One that doesn't require you to sit
1:04
in front of a screen all day. Uh one
1:06
that doesn't need FNO leverage or even
1:08
complex setups. Right? I call it the
1:10
nifty shop strategy. Uh it's simple,
1:12
it's systematic, and has given me
1:13
consistent results not just on paper but
1:16
with real money. Right? And if you stick
1:17
around for the next few minutes, I'll
1:19
walk you through exactly how it works,
1:20
what rules I follow, and why I believe
1:22
this might be one of the best ways to
1:24
trade for beginners and a conservative
1:25
traders alike.
1:27
uh if you know Fab Trader channel, you
1:28
know, we we back test a lot of fresh
1:30
strategies. However, in this case, I'm
1:31
not going to be back testing it, but I'm
1:33
going to be sharing the real results
1:34
from my own trading uh you know, this
1:36
strategy for the last 1.5 years, right?
1:38
So, I'm sure you're excited. Let's get
1:39
started.
1:41
If this is your first time here,
1:42
welcome. My name is Vive and I'm a
1:44
financial independent algo trader. This
1:45
channel is all about building a
1:46
community of algo traders. We discuss
1:47
everything about a trading using Python,
1:49
building and practicing trading
1:50
strategies, market updates, much more.
1:51
Please do visit our community website
1:53
fabtrader.in. Also do check out my other
1:54
YouTube channel Fab Wealth, where I talk
1:56
about my own financial independence
1:57
journey and share tools, methods, and
1:58
strategies that help me achieve my
2:00
financial flow. Thank you. Now, if
2:02
you're someone who's serious about
2:03
building wealth, not just uh, you know,
2:04
chasing thrills, let me tell you about
2:06
something that's worked incredibly well
2:07
for me. Uh, it's a strategy that I've
2:09
personally run for over a year now. It's
2:10
called the nifty shop strategy. It's
2:12
simple, it's robust, and it's
2:13
surprisingly effective, especially who
2:15
who those want to keep, you know, kind
2:17
of the risk low, effort minimal, and
2:18
also the results decent. Right. So, the
2:20
full credit here goes to Mr. Maheshandra
2:22
Koshik. is one of uh you know the he's
2:24
he's the one who originally shared this
2:26
concept on YouTube and he's he's uh he's
2:28
brilliant right so I've taken the core
2:30
idea added my own little tweaks uh and
2:32
discipline to it and I built a strong
2:34
consistent track record also with it
2:35
right you might find multiple variations
2:37
of this nifty shop on YouTube however
2:38
the the core idea is mostly the same
2:40
with just a few tweaks right so I also
2:42
run a different version of the the same
2:44
strategy which I'll cover in a separate
2:45
video so watch this space subscribe to
2:47
the channel if you haven't already and
2:49
stay connected okay a quick note before
2:52
we go deeper this It's not investment
2:53
advice. The video is purely for
2:55
educational purposes only. And what
2:56
worked for me, you know, might not work
2:58
for you unless uh you you truly
3:00
understand the logic. Do your own back
3:01
testing. And most importantly, trade
3:02
with responsibility. All right, let's
3:04
talk about why the strategy works,
3:06
right? First, we dealing only with the
3:08
nifty50 stocks. These are, as you know,
3:10
the India's biggest and most stable
3:11
companies. Think of uh you know, TCS,
3:14
Reliances, HTFC of the world, right?
3:16
These are these are not shady micro
3:17
caps. These are these are real giants,
3:18
right? They they wobble, they dip, but
3:21
they they rarely fall flat, right? The
3:22
whole idea behind the Nifty shop is just
3:24
this, right? When a a great stock falls,
3:27
it it's often temporary, right? That dip
3:29
is is basically an opportunity. So,
3:30
instead of chasing highs or gambling on
3:32
momentum, we do just the opposite. We
3:34
wait for the weakness, we buy the dip
3:35
and we sell on recovery. And that's the
3:37
foundational promise behind a strategy.
3:39
Right? You might think, you know, that
3:41
sounds so simple and might be wondering
3:42
if this really works. Wait for a few
3:44
more minutes and I'll I'll I'm sure
3:46
you'll be surprised. I have a general
3:48
appeal to make. Uh close to 80% of the
3:50
people who watch my videos don't seem to
3:51
be subscribing. As you're aware, this
3:53
community is just one person initiative
3:55
dedicated to help people on their fire
3:56
and wealth buildinging journey. Running
3:58
and maintaining this community takes
3:59
time, effort, and resources from my
4:00
side. Um one way you could support this
4:02
community is by subscribing, liking, and
4:04
also sharing this content with your
4:05
friends. This will motivate me to do
4:06
more such videos and keep this community
4:08
alive. Thank you.
4:10
Now, talking about the entry rules, it's
4:12
pretty simple. And here's what the daily
4:13
routine uh looks like. And and and the
4:15
best part, you only need about 10
4:16
minutes a day if you're doing it
4:17
manually. Um so at around 3:20 p.m., you
4:21
know, the market closes at 3:30 p.m. So
4:22
10 minutes before the market closes,
4:24
just before the market close, step
4:25
number one, you scan the Nifty50
4:27
universe and five and find five stocks
4:30
that are trading the farthest below
4:31
their 20-day moving average. Right? So
4:34
uh you scan and you find out five stocks
4:36
that are trading farthest below their
4:39
20-day moving average. Right? So these
4:41
are the ones that are currently beaten
4:42
out, right? Clearly. Step number two,
4:44
from those five, pick up to two stocks
4:47
that you don't already hold and then buy
4:49
them. Right? If all five stocks are
4:52
already in your portfolio, so you don't
4:54
basically force a trade. Instead, you
4:55
move to what I call the averaging mode,
4:57
which is the next step. Now, I know
4:59
averaging down gets a bad rep and you
5:01
might be rolling your eyes now and even
5:02
thinking, you know, or getting ready to
5:03
close this video, but hang in there.
5:05
Hear me out. In the strategy, you
5:07
average only when the stock from your
5:08
holding has fallen more than 3% from
5:10
your last buy, which is your average
5:12
price, right? If you have more than one
5:13
holdings, then the average price is
5:15
going to be your average buy price from
5:16
where you need to calculate how how far
5:18
down the the price has fallen, right?
5:19
And you don't go all in and buy
5:21
everything. You just buy one stock per
5:23
day, right? You you going to be doing
5:24
only one averaging per day, the one that
5:26
has fallen the most. So, it's it's a
5:29
controlled thoughtful way of building
5:30
your position, not some blind doubling
5:32
down, right? And remember, we are doing
5:33
this uh you know on uh with the India
5:36
top companies and not just random junk.
5:38
So, just to recap the entry rules just
5:39
so there's no confusion. At 3:20 p.m.
5:41
every day, you look at the Nifty50
5:43
universe and you find five stocks that
5:45
are trading the farthest below that has
5:47
fallen the the farthest below from the
5:48
20-day moving average. And then if you
5:51
and then pick two of those ones from
5:53
from that list and then you you buy them
5:55
if you don't already hold them, right?
5:56
In case you your portfolio, all the five
5:58
that you've just picked are already part
6:00
of the portfolio, you move into
6:01
averaging mode, right? In the averaging
6:03
mode, what you do is you look at your
6:04
existing portfolio, your holdings, and
6:06
then find the stocks that have fallen
6:08
more than 3% from your average buy
6:10
price. Right? And then the you you
6:11
basically buy one more lot of the the
6:13
particular stock that has fallen the
6:15
most. Right? Out of the the ones that
6:16
have fallen below 3%, you take the one
6:18
that has fallen the most and you buy
6:19
only one lot. So there's only averaging
6:21
for one stock per day. The exit rules is
6:24
pretty simple. At the end of the day,
6:25
before you begin the buy leg of the
6:26
strategy, you do the following steps to
6:28
do the the sell leg of it, right? You
6:30
basically try and sell the stocks that
6:31
are eligible. So at 3:20 p.m. every day,
6:34
you check your portfolio and see if any
6:36
stock trading more than 5% above your
6:38
average buy price. Right? 5% is the
6:40
target we have kept for the strategy. So
6:42
you need to look for stocks that are
6:43
trading more than 5% above your average
6:46
buy price. Right? If if yes, you just
6:48
sell only one stock per day, the one
6:50
that is gained the most. Right? If you
6:51
had two stocks that are basically either
6:53
say 5% and 5.5%, you sell only the one
6:56
that is 5.5% uh that has that has gone
6:58
up by 5.5% on that day. So that's it.
7:02
You don't rush. You don't exit
7:03
everything at once. You just chip away
7:05
small wins consistently. Optionally, you
7:07
can increase the target percentage to 6
7:08
or 7%, but 5% is is the most optimum
7:11
number based on experience.
7:13
As far as how much capital to allocate,
7:15
u here's what the strategy
7:16
recommendations are. There are actually
7:17
two approaches that you could take. The
7:19
first one is just go with a fixed 15,000
7:21
per trade, right? I mean, no nonsense.
7:23
Just consider 15,000 per trade for every
7:25
trade that you're taking. That's the max
7:26
limit, right? Or the second approach is
7:29
is that you divide the overall strategy
7:31
balance by 40 right and use that number
7:33
every time you enter or average right so
7:37
the second method lets you your position
7:39
size kind of grow over time as the
7:40
capital grows so it's a quiet way of
7:42
basically compounding and it makes a big
7:44
difference over a long run right however
7:46
um if you don't want to complicate
7:48
things the first option is equally good
7:49
and that's the approach that I've been
7:50
using so far and remember you use the
7:53
same position size for both buying a
7:55
fresh buy and also for averaging So if
7:57
if you choose 15,000 per trade, when you
7:59
buy a fresh stock, you again have that
8:01
15,000 limit. When you're trying to
8:02
average also, you again stick with that
8:04
15,000 limit. I know I mentioned you
8:06
need about 10 minutes each day. Uh but
8:09
the way I'm currently doing it is I've
8:10
fully automated this. This runs on my
8:12
algo platform completely fully
8:14
automated. I I don't spend any time on
8:15
this one. And the the rules, as you can
8:17
see, it's pretty simple, right? With
8:19
less than about 20 30 lines of code, you
8:21
can you can implement the entire uh
8:23
logic of this strategy. And and that's
8:25
the you know, the benefit of it. So this
8:27
is one reason I've been telling uh to
8:28
everyone within the community that it's
8:30
worth uh your time trying to learn
8:32
Python or any language for that matter
8:34
and automate your strategies as much as
8:35
possible and especially these strategies
8:37
which are very straightforward and
8:38
simple. It's easy to maintain um unlike
8:41
you know you have very complex option
8:42
strategies where you're worried about
8:43
you know whether the price would jump
8:44
over your stop loss and what if my
8:46
stop-loss order or target harder doesn't
8:48
hit all that things you don't have to
8:50
worry about it's it's simple basically
8:52
implement and forget and the the code
8:53
basically runs on its own and if you ask
8:56
me that's the best way to actually do it
8:59
all right so enough of talking let's
9:01
look at how the strategy performed um
9:03
I've named this strategy Aditi I'm
9:05
currently running it on a small account
9:06
uh on zeroda this is my wife's account.
9:09
She has multiple accounts. This is one
9:10
of those small smaller accounts on which
9:11
this has been running for more than 1.5
9:13
years. I think since uh August 2023 uh
9:16
until March, I I don't have anything
9:17
beyond March yet. But I think this
9:19
strategy, the data that I currently have
9:21
only runs until March. That's why you
9:22
see a flat top here, right? Um so, so
9:25
overall, if you really look at the, you
9:27
know, the performance, I think it's
9:28
pretty good. You have a 100% win ratio
9:30
as expected because you don't have any
9:32
stop- loss. You keep averaging down. You
9:33
never basically cut your trades. you
9:36
always finish end up basically finishing
9:37
it in profit, right? And uh 24% CGI,
9:40
which I think is pretty decent because
9:42
you're almost taking zero risk with your
9:43
money. Uh and then that's close to about
9:45
2% a month, which is uh very very decent
9:47
if you ask me. Um and then draw down as
9:50
you can, you know, know it's it's uh 0%
9:52
because we're not really closing trades
9:53
prematurely, right? So that's that and
9:55
the equity curve uh looks uh really
9:57
good. Uh the brown one is the the equity
9:59
curve of the strategy. Um so please
10:01
consider until March because I've not
10:02
traded it stay flat on top and then the
10:04
the white ones if if I had invested in
10:06
nifty at the same time the same amount I
10:08
mean this is what the performance would
10:09
have been which clearly looks pretty
10:11
good. In fact the nifty has a small uh
10:13
dip here under water whereas the
10:15
strategy continues to have a smoother
10:16
upward trending curve which is which is
10:18
really really good. Uh there's nothing
10:19
to report on the draw down because we
10:21
don't have a draw down. You're not
10:22
closing any trades prematurely. And this
10:24
at a at a high level you know look at
10:26
the the yearly returns year-on-year
10:27
returns. uh you know uh yeah we have the
10:29
monthly returns as well as the the
10:30
compounded yearly returns as well. So
10:32
24% in 2023 37.2 to in 2024 which
10:35
actually is very good because 2024 um we
10:37
did struggle in the the later part of
10:39
the year in spite of that it's it's
10:40
pretty decent 2025 only until March so
10:43
there's not much to report here um as as
10:45
I'd mentioned the draw down underwater
10:47
plot the white is nifty so the strategy
10:49
doesn't have any you know underwater uh
10:51
you know situations to use which is
10:53
which is again really good I spoke about
10:55
how good in terms of the the risk
10:57
positioning here for for the strategy uh
10:59
and then if you really look at the the
11:00
strategy versus benchmark um so 2023 12%
11:03
versus 24% you have a 2x year and then
11:05
2024 8 and 34 which is a 3x year right
11:08
which which really good both these years
11:10
it beats the benchmark by a long way
11:11
2025 of course it's uh it's only 3
11:13
months and less than 3 months you have a
11:15
slight dip but I think after the
11:16
recovery uh the story should have been
11:18
slightly different and these are all the
11:19
the trades that I took um currently
11:21
there are no negative ones because if
11:22
there are any trades that are in loss
11:24
you would have a red line or a red color
11:26
marked here so currently I don't have
11:27
any which means that you know pretty
11:28
much all of it uh ended positively and
11:31
then you can look at all the nifty50
11:32
right uh the the stocks here nothing
11:34
nothing beyond the nifty50 universe and
11:36
also the um position size initially I
11:39
was following a 10,000 limit I believe I
11:43
increased it by about 15,000 yeah you
11:45
can see the 15,000 later uh during the
11:47
year right so initially it was 10,000
11:49
per lot and then it increased by 15,000
11:51
and then u I'd also mentioned that the
11:53
the the target percentage for sell is 5%
11:57
but however you might uh you know see
11:58
here that some of these are prematurely
12:00
closed like 4.2 to uh sometimes even
12:02
3.7. So that's primarily because my wife
12:05
sometimes closes these trades a little
12:07
early. Um
12:09
because there's a way within the algo
12:10
system where you can force close some of
12:12
your trades uh you know early uh using
12:13
the from a command using a telegram uh
12:16
from your telegram. So so that's how I
12:17
think she's closed a few trades here.
12:18
That's why you see this 3.9 3.7
12:21
otherwise you know uh most of it is
12:23
above five right so you you basically
12:25
let it run as much as possible and then
12:27
you close it at the highest possible
12:28
returns as possible. So, so that way I
12:30
think uh this is really good. If anyone
12:32
wants a copy of the uh the trade book,
12:34
please do ping me. I'll be more than
12:36
happy to provide that. I also run the
12:38
same strategy on my bigger account as
12:39
well. So, my overall experience has been
12:41
that not once did I feel kind of out of
12:43
control because I know I'm not
12:44
overleveraged. I'm not chasing momentum.
12:46
I'm only dealing with the the most
12:47
highquality businesses of India. I know
12:50
we live in a world where everyone's
12:51
looking for that next big breakout or
12:52
the latest options hack. But honestly,
12:55
um wealth isn't built by jumping around.
12:57
It's built by consistency, simplicity
12:58
and discipline purely, you know, from my
13:00
perspective, right? So, the nifty shop
13:01
may not be, you know, the the the most
13:04
sexiest uh strategy that you have seen,
13:05
but it kind of works. And more
13:06
importantly, it teaches you the right
13:08
habits, which is number one, patience,
13:09
risk control, and selective action. So,
13:11
if you are someone who works full-time,
13:13
who doesn't want to be glued to the
13:14
screen all the time, I think this is a
13:16
great place to start. All right, if this
13:18
made sense to you, uh, give the video a
13:20
like so it reaches more people who need
13:21
to hear this. Uh I'll be doing a
13:23
follow-up video on the the other
13:24
variation of the same strategy that I
13:26
talked about and I'll share that
13:27
performance as well shortly. Uh so until
13:29
then hit subscribe and turn on the bell
13:31
notification as well. And if you have
13:32
tried something similar or have
13:34
questions you know please do drop a
13:35
comment. I love chatting with you guys
13:36
and that's what this community is is for
13:38
really right. Uh so
13:41
all right that's it for today. Stay
13:42
curious, stay grounded as always. Trade
13:44
safe, build slow and keep moving forward
13:46
uh towards your financial freedom. This
13:47
is Vive from Faprader. See you in the
13:49
next one. Bye. If you genuinely found
13:51
this video useful, please consider
13:52
subscribing and liking the video. And I
13:54
will see you soon in another video. And
13:55
until then, take care and happy trading.
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