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All About Bank Nifty Trading Strategy

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All About Bank Nifty Trading Strategy

The Bank Nifty investing method is a smart choice. This is because this weighted index gives a benchmark that offers a stable view of the banking sector’s capital market performance. Over the years, many buyers who've focused on the buying and selling of Bank NIFTY options have devised a plethora of bank nifty options intraday trading strategy and the market is now littered with Bank NIFTY pointers and tutorials on a way to trade in Bank NIFTY. 


Bank Nifty (NSE) is an index which incorporates 12 stocks (that trade on NSE) from the banking industry which might be the most liquid and largely capitalised. Bank Nifty shares belong to the public in addition to the private sector. It was released in 2003. The Bank Nifty Index may be referred for more than one purpose. 


For instance, benchmarking of fund portfolios, introduction of new ETFs, index funds and other established products. The Bank Nifty Index uses Jan 2000 as the base year though it was introduced in 2003. The Bank Nifty share expenses and values are displayed on a real-time basis during the NSE trading hours. 


Some of the top shares comprising the Bank Nifty Index are:


  • HDFC Bank Ltd.
  • ICICI Bank Ltd.
  • Axis Bank Ltd.
  • Kotak Mahindra Bank Ltd.
  • State Bank of India
  • IndusInd Bank Ltd
  • AU Small Finance Bank Ltd.
  • Bandhan Bank Ltd.
  • Federal Bank Ltd.
  • IDFC First Bank Ltd.


All the Bank Nifty shares are assigned a weightage. The Bank Nifty weightage of the stocks is computed primarily based on the free-float market capitalization methodology. The most weightage of a single stock does not exceed 34% and the cumulative weightage of the top 3 shares does not cross 63% in the Bank Nifty weightage. 


The Bank Nifty Chart may be used to apprehend the fee motion and any modifications in tendencies withinside the Bank Nifty Index. The data is available for more than one time frame like daily, weekly, monthly, 3-months, etc. The weekly and monthly Bank Nifty charts are most typically used to take access decisions or profit booking.


 A choice chain lists all the choice (put and call) strike costs along with the premium for a specific maturity period. In the sector of trading, lot size refers to the range of stocks (or some other instrument) that you should buy in a single transaction. This concept allows for standardisation.


“Technical analysis” performs a critical function in making an investment. It allows in identifying patterns, analysing trends and examining the strength and persistence of the trends. You can't depend simply on the Bank Nifty news (which is available to everyone). You need to look through and read between the lines, something which Bank Nifty Technical Analysis will assist you to do.


The movement of the Bank Nifty Index may be analysed from parameters: fundamental and technical which can be learned in a bank nifty trading course. Fundamental elements consist of bond yield movement, quarterly outcomes of the top six participants in the Bank Nifty Index, etc. Technical elements consist of Index’s high call and put choice, weekly and monthly option activity, COC (Cost-of-carry) motion, VWAP (Volume weighted average price) level, historic volatility motion, Index Ratio trend, etc.

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