The futures instrument is a derivative contract in which the value is derived in part from an underlying asset in the market. When it comes to Nifty futures, the index itself is fundamental.

Thus, the value of the Nifty Futures is determined by the Nifty Index. It follows that if the Nifty Index increases in value, so will the value of Nifty futures. Likewise, Index futures will fall if the value of the Nifty Index falls.

As with any futures contract, Nifty Futures appear in three varieties: current month, mid-month, and far month.