What is Bank Nifty ?
Nifty Bank, or Bank Nifty, is an index comprised of the most liquid and large capitalised Indian banking stocks. It provides investors with a benchmark that captures the capital market performance of Indian bank stocks. The index has 12 stocks from the banking sector.
The top stocks of the index include HDFC Bank Ltd. 31.61%, ICICI Bank Ltd. 18.20%, Axis Bank Ltd. 13.02%, Kotak Mahindra Bank Ltd. 12.74% and State Bank of India 10.92%. Bank Nifty, like others, is computed using free float market capitalization method. It's index variant includes NIFTY Bank Total Returns Index or Bank NiFty TRI. The index was launched in 2003.
What Is Bank Nifty Technical Analysis?
“Technical analysis” plays a crucial role in investing. It helps in identifying patterns, analyzing trends and examining the strength and persistence of the trends. You cannot rely only on the Bank Nifty news (which is available to everyone). You need to see through and read between the lines, something which Bank Nifty Technical Analysis will help you to do. A good trading platform, such as the one provided by TradeSmart has in-built advanced technical analysis tools to fine-tune your investing decisions.
The movement of Bank Nifty Index can be analyzed from two parameters – fundamental and technical.
Fundamental factors include bond yield movement, quarterly results of the top six participants in the Bank Nifty Index, etc. Technical factors include Index’s high call and put option, weekly and monthly option activity, COC (Cost-of-carry) movement, VWAP (Volume weighted average price) level, Elliott Wave (only for positional trend), historical volatility movement, Index Ratio trend, etc.
What is Nifty IT ?
The NIFTY IT index captures the performance of the Indian IT companies. The NIFTY IT Index comprises of 10 companies listed on the NSE. The top stocks in Nifty IT include Tata Consultancy Services Ltd. 27.43% weight, Infosys Ltd. 27.04%, HCL Technologies Ltd. 8.52%, Wipro Ltd. 8.46% and Tech Mahindra Ltd. 8.22%. The Nifty IT index variant is NIFTY IT Total Returns Index
What are Nifty based derivatives ?
The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures on June 12, 2000. The futures and options segment of NSE is heavily dependent on Nifty. In the Futures and Options (FNO) segment, trading in Nifty 50 Index, Nifty IT index, Nifty Bank Index, Nifty Midcap 50 index etc. and single stocks are available. Long term Options on Nifty 50 are also available.
Where you can find FNO Updates and FNO Bank Nifty Updates ?
In the Futures and Options (FNO) segment, trading in Nifty 50 Index, Nifty IT index and Nifty Bank Index is extremely popular. This is why many investors looking for information and updates about these products.
NIFTY FNO is basically futures on Nifty index. Similarly, FNO Nifty IT is futures on Nifty IT index. All of them have a maximum of 3-month trading cycle and the futures contracts expire on the last Thursday of the expiry month.
Nirmal Bang provides F&O reports on a daily basis. This will help you understand FNO Bank Nifty Updates, NIFTY FNO Updates and FNO Nifty IT Updates in a jargon-less manner.
What Is Bank Nifty Option Chain?
An option chain lists all the option (put and call) strike prices along with the premium for a specific maturity period. You can check the Bank Nifty Option chain along with the Bank Nifty spot prices on the TradeSmart portal.
What Is Bank Nifty Lot Size (F&O)?
In the world of trading, lot size refers to the number of stocks (or any other instrument) that you can purchase in a single transaction. It is also referred to as “size of the trade”. This concept helps to bring in standardization. The bank nifty lot size currently stands at 20. It was changed from 40 to 20 in October 2018.
