BANKNIFTY Daily Analysis: What is Bank Nifty? The Nifty Bank Index is a sectoral index made up of the 12th biggest and most liquid financial institutions in India. The BANKNIFTY index moves based on the performance of these top Indian banking stocks.
The top stocks in the Bank Index are HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., and State Bank of India.
As a trader, you will utilize the BANKNIFTY index to assess how well Indian banks perform. AUBSP.com has provided you comprehensive information about the Bank Nifty index.
NIFTY BANK Analysis for Option Trading
Bank Nifty Daily Analysis 2024
BANK NIFTY Level for Call or Put Option Buy or Sell: Here are the BANK NIFTY Prediction for the next trading day i.e. April 15, 2024. Bank Nifty Prediction for Tomorrow.
आइये देखते हैं Monday के दिन बैंक निफ़्टी में कैसे ट्रेड लेंगे और क्या इम्पोर्टेन्ट लेवल होगा।
No Trading Zone: Avoid trading in BANKNIFTY option if Bank Nifty spot price (INDICES) moves between 48571-48641 levels. These levels will work as the latest Support and Resistance.
- Call Option (CE) Buy or Put Sell above 48641 and target will be 48785, 48880 and 49057.
- Put Option (PE) Buy or Call Sell below 48571 and target will be 48477, 48365 and 48267.
Monday के दिन अगर बैंक निफ़्टी 48641 लेवल को ब्रेक करता है तो ऊपर के साइड में पहला टारगेट रहेगा 48785. उसके बाद next target 48880 और 49057 के लिए बैठ सकते हैं।
याद रखियेगा अगर बैंक निफ़्टी निचे के साइड में ट्रेड करने लगता है तो 48571 सपोर्ट का काम करेगा। अगर ये लेवल ब्रेक होता है तो 48500 का PUT ले सकते हैं और टारगेट रहेगा 48477, 48365 और 48267.
What is gap up and gap down in Bank Nifty? A full gap up occurs when the next day opening price is higher than the high price of the previous day. Similarly, you may call full gap down when the next trading day NIFTY BANK opens below the low price of the previous day.
How to trade in Bank Nifty Gap-up and Gap-down: If bank nifty opens a very big gap up or gap down then wait and watch to make a decision to trade. Just look for a pattern or range or your set-up before trading in Bank nifty option.
Bank Nifty Weekly Analysis 2024
On weekly basis Bank Nifty is very weak below 48181 and it go down to 47388. However, if a daily basis candle closes above 49080 then the Bank Nifty will be controlled by buyers and it will create a new high to touch 49856.
Bank Nifty Monthly Analysis 2024
AUBSP.com has analyzed that the NIFTY BANK will fall in the third week of April 2024. In other words, if you are an option buyer then Buy April 2024 Put Option (PE) if bank nifty go below 47388 level. However, if you are an option writer then Sell April 2024 Call Option (CE) when bank nifty closes a 35 minutes candle below 45565.
Loss in BANK NIFTY Option Trading
Analysis of Profit and Loss of Individual Traders dealing in Equity F&O Segment
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to ₹50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Source: SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.
How to recover my huge losses made in Bank Nifty Option Trading? There is no short cut method to recover your losses in buying or selling Bank Nifty CALL OPTION (CE) or PUT OPTION (PE).
However, your loss may be turn into profit if you follow some basic rules of Stock Market provided by AUBSP.com for you.
Step-1 (Pen and Paper): First of all buy a pen and paper for daily BANKNIFTY option trade record. Keep it with you every time you trade in Bank Nifty and note down information stated in Step-4 Never avoid this and don’t try to note on you mobile, PC, Laptop or any digital board.
Step-2 (Lot Size): Next you have to trade with TWO lots as recommended by AUBSP.com for you. (Please ignore this step you have not comply with the very first step).
Step-3 (Strike Price): The best strike price in Bank Nifty trading is ITM (In The Money) call or put option. A call option is in the money if the market price (BANKNIFTY) is above the strike price.
However, AUBSP.com recommends to choose option with strike price between ₹350-₹450 irrespective of market price.
Step-4 (Maintain Record): Write the following detail after you made profit or loss in your first trade of the day.
- Why have you entered in your trade?
- Have you entered in a random trade? If not then which set up you followed for making order in CE/PE?
- What was the maximum loss that should be taken?
- What is the possibility of minimum profits?
Step-5 (No. of Trades): A single trade in a day is enough for making you profitable trader. Sometimes you see the market is in your favour to make more money then go for it.
But before taking another trade, please make sure that you abide by these conditions:-
- You have enough profits made in the first trade to buy at least one lot.
- Never go for second trade if your first trade was in loss. Shut down computer and plan for the next trading day.
- You see the same set up in the market which returns 60-70% chances of winning ratio.
What should be the minimum amount for Bank Nifty option trading? We are recommending you to trade with 2 lots at ITM option strike price (₹350-₹450) in BANKNIFTY. Accordingly, you need at least amount of ₹25,000 – ₹40,000 for option trading.
Nifty Bank Index Components
BankNifty Index Constituents: A constituent is a company whose shares are the part of the index and are used to calculate the index value. The weight that each constituent has on the overall index is based on market capitalisation.
Index weight represents the share percentage of constituents in the index. Contribution change measures the contribution of each constituent towards the movements in the index value.
Following table shows the list of BANK NIFTY (NSEBANK) Constituents:
| Company Name | Symbol | Sectoral Distribution |
|---|---|---|
| AU Small Finance Bank Ltd. | AUBANK | 1.75% |
| Axis Bank Ltd. | AXISBANK | 10.09% |
| Bandhan Bank Ltd. | BANDHANBNK | 0.94% |
| Bank of Baroda | BANKBARODA | 3.15% |
| Federal Bank Ltd. | FEDERALBNK | 2.14% |
| HDFC Bank Ltd. | HDFCBANK | 25.27% |
| ICICI Bank Ltd. | ICICIBANK | 24.95% |
| IDFC First Bank Ltd. | IDFCFIRSTB | 1.97% |
| IndusInd Bank Ltd. | INDUSINDBK | 6.21% |
| Kotak Mahindra Bank Ltd. | KOTAKBANK | 9.19% |
| Punjab National Bank | PNB | 2.31% |
| State Bank of India | SBIN | 12.04% |
Nifty Bank Futures and Options
Bank Nifty Futures and Options (F&O): Here is the basic knowledge about the BANKNIFTY Futures and Options.
Nifty Bank Futures:
A futures contract is a forward contract, which is traded on an Exchange. BANK Nifty futures Contract would be based on the index BANK NIFTY index.
Nifty Bank Options:
An option gives a person the right but not the obligation to buy or sell something. An option is a contract between two parties wherein the buyer receives a privilege for which he pays a fee (premium) and the seller accepts an obligation for which he receives a fee.
The premium is the price negotiated and set when the option is bought or sold. A person who buys an option is said to be long in the option. A person who sells (or writes) an option is said to be short in the option.
The options contracts are European style and cash settled and are based on the BANK NIFTY index. Option type identifies whether it is a call or a put option:
- CE full form is Call European; and
- PE full form is Put European.
Trading cycle
BANKNIFTY monthly options contracts have a maximum of 3-month trading cycle – the near month (one), the next month (two) and the far month (three). On expiry of the near month contract, new contracts are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract. The new contracts are introduced for three month duration.
Revision in expiry day for BANKNIFTY weekly options contracts: Effective March 01, 2024, Bank Nifty weekly options will expire on Wednesdays. Further, Monthly expiry contracts will also expire on the last Wednesday of each month.
There is no change in trading cycle i.e. BANKNIFTY will continue to have 4 weekly expiration contracts (excluding monthly contracts), 3 monthly expiration contracts and 3 quarterly expiries (March, June, Sept & Dec cycle).
BANKNIFTY weekly options contracts have 4 weekly expires excluding the expiry week of monthly contract. New serial weekly options contract is introduced after expiry of the respective week’s contract.
Nifty Bank index Options will have Three quarterly expiries (March, June, Sept & Dec cycle).
Expiry day
BANKNIFTY monthly options contracts expire on the last Wednesday of the expiry month and weekly options contracts also expire on every Wednesday of the week. If the last Wednesday is a trading holiday, the contracts expire on the previous trading day.
Note that with effect from March 01, 2024, all contracts of Bank Nifty – weekly, monthly and quarterly – will now expire on Wednesdays.
Stock Market Timings 2024
Trading allows in the stock market on the equities segment all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance).
The market timings of the equities segment are:
Pre-open session:
Pre-market session opens on trading day in the morning at 9:00 AM and closes at 9:08 AM.
- Order entry & modification Open: 09:00 hrs
- Order entry & modification Close: 09:08 hrs*
*with random closure in last one minute. Pre-open order matching starts immediately after close of pre-open order entry.
Regular trading session:
For regular trading the stock market opens at 9:15 AM and closes at 3:30 PM.
- Normal / Limited Physical Market Open: 09:15 hrs
- Normal / Limited Physical Market Close: 15:30 hrs
Closing Session:
The stock market closing session is held between 3:40 PM to 4:00 PM.
Block Deal Session Timings:
Morning Window: This window shall operate between 08:45 AM to 09:00 AM.
Afternoon Window: This window shall operate between 02:05 PM to 2:20 PM.
Trading Holidays 2024
AUBSP.com has listed official trading holidays calendar 2024 published by NSE (National Stock Exchange), BSE (Bombay Stock Exchange) and MCX (Multi Commodity Exchange).
The next stock market trading holiday is on Wednesday, 17th April, 2024 on account of Shri Ram Navmi. Last trading holiday was on Thursday, April 11, 2024 for Id-Ul-Fitr (Ramadan Eid).
The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures on June 12, 2000. The Exchange introduced trading in Index Options on June 4, 2001.
The Exchange has also introduced trading in Futures and Options contracts based on Indices. Currently, Derivatives on NIFTY 50, NIFTY Bank, NIFTY Financial Service (FINNIFTY) and NIFTY Midcap Select are available for trading.
NSE also became the first exchange to launch trading in options on individual securities from July 2, 2001. Futures on individual securities were introduced on November 9, 2001.
Disclaimer: The information provided above is purely for education purpose. They are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by AUBSP.