Mahindra shares climb over 5%; hit 52-week high

Mahindra shares climb over 5%; hit 52-week high

Shares of Mahindra & Mahindra (M&M) climbed over 5 per cent in morning trade on Friday after the company and the British International Investment (BII) inked a pact to invest Rs 1,925 crore each in a wholly-owned subsidiary of the homegrown auto major. The stock jumped 5.16 per cent to its 52-week high of Rs 1,191.90 on the BSE. At the NSE, it climbed 5.43 per cent to Rs 1,194.90 — its 52-week…

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Is Hexaware Technologies Going for IPO?

Hexaware, an IT and business process outsourcing (BPO) services provider, delisted from the NSE and BSE in November 2020 at a price of ₹475 per share. In 2021, US private equity giant Carlyle acquired a 62% stake in Hexaware for $3 billion. Hexaware is now planning to re-enter the public market with an IPO that could raise up to $1 billion (₹8,350 crore) at a valuation of $4-5 billion (₹41,000-50,000 crore). Carlyle has finalized five investment banks as underwriters for the IPO: Kotak Mahindra Capital, Citi, JP Morgan, HSBC, and IIFL Securities. If the IPO goes through, it will be the biggest IPO in the IT services sector after TCS. Currently, shares are available in the pre-IPO market at ₹1,100 per share at a valuation of $4 billion. Investors who have accumulated these shares at ₹450-900 are seeing good returns. I recommend these investors hold on to their shares. For those who haven't invested yet, we suggest doing their due diligence before making an investment decision.

Nifty, Sensex End Higher For Fourth Day Led By ICICI Bank, Kotak Bank: Market Wrap

India's benchmark stock indices ended higher for the fourth session on Wednesday, led by gains in Kotak Mahindra Bank Ltd., ICICI Bank Ltd., and Larsen & Toubro Ltd. The NSE Nifty 50 ended 34.40 points or 0.15% higher at 22,402.40, and the S&P BSE Sensex gained 114.48 points or 0.16% to close at 73,852.94. Intraday, the NSE Nifty 50 rose 0.48% to 22,476.45, and the S&P BSE rose 0.52%. "Late selling at higher levels erased the majority of the Nifty 50 gains to settle at 22,402.40, with gains of 34.40 points," said Aditya Gaggar, director, Progressive Shares. "Nothing has changed in Nifty50, and we continue to stick to our view, i.e., we need to fill the 22,430–22,500 gap zone to extend its uptrend, while a level of 22,200 (50DMA) will continue to act as support." "Indian markets lagged the Asian peers as Q4 earnings remained largely subdued, with weak results from IT and a few index heavyweights also disappointed. However, buoyed by strong manufacturing and service sectors, the Indian composite PMI hit a multi-year high, reflecting domestic resilience and bringing some buoyancy to the broad market. Globally, investor sentiment improved with easing tensions in the Middle East and declining oil prices," said Vinod Nair, head of research at Geojit Financial Services. Kotak Mahindra Bank Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., Tata Steel Ltd., and HDFC Bank Ltd. contributed to the index. Reliance Industries Ltd., Tata Consultancy Services Ltd., Bharti Airtel Ltd., and Infosys Ltd. limited gains in the index. On NSE, eight sectors advanced and four declined. The NSE Nifty Metal index was the top gainer, while the NSE Nifty IT index was the top loser

Business Begins on a Positive Note in the Stock Market, Sensex and Nifty Both Up

The stock market saw a rise in business as Sensex was trading 98 points up at 66,363, while Nifty was up by 33 points at 19,760.

The last trading day of the week witnessed a bullish trend in both major indices. In the morning session, both Sensex and Nifty were trading in the green. Sensex was up by 98 points at 66,363, and Nifty was up by 33 points at 19,760. Among the Nifty 50 stocks, 29 were advancing, while 18 were declining. Notable gainers included shares of LT, NTPC, TATASTEEL, ONGC, and BHARTIARTL. On the other hand, shares of APOLLOHOSP, AXISBANK, HINDALCO, TCS, and BRITANNIA were among the ones witnessing a decline. Read more : Jawaan Box Office Collection Day 21: On the 21st day, Shahrukh Khan's film "Jawaan" has witnessed a decline in its collections. It's worth mentioning that HDFC Bank, L&T, and SBI stocks continued their upward trajectory in the local stock market on Thursday, marking the fifth consecutive trading session of gains, pushing Sensex beyond the 66,000 mark. Traders noted that the local market received support despite softening crude oil prices in the international market. The BSE Sensex, consisting of 30 stocks, closed at 66,265.56, up by 385.04 points or 0.58%. During this rally, Sensex successfully recovered from early losses. Throughout the trading session, Sensex fluctuated between 65,672.34 on the downside and 66,296.90 on the upside. The National Stock Exchange (NSE) Nifty index also closed in the green, up by 116 points or 0.59% at 19,727.05. Among the Sensex companies, Larsen & Toubro recorded the highest gain at 4.26%. IndusInd Bank, Tech Mahindra, State Bank of India, HCL Technologies, Power Grid, NTPC, Axis Bank, Kotak Mahindra Bank, HDFC Bank, and Wipro were also trading in the green. Meanwhile, Mahindra & Mahindra, Infosys, UltraTech Cement, and Hindustan Unilever saw their shares decline. Read more : The shooting of this spy thriller has been going on for 10 years, and in November, the South Indian film 'John' is set to challenge both Tiger and Pathan. Read the full article

Tips and Calls Make On a Daily Basis Heyday in Stock Market

Tips and Calls Make On a Daily Basis Heyday in Stock Market

The stock market is an extremely enticing front to make quick cash. But added caution should be absorbed order to discontinue from wrecking your hard earned money. The stock market is an area where supplies and also shares of numerous excellent companies are dealt. When you buy a share you are virtually being a partial partner in a firm. They do not give you the right to have a say in their daily working but most definitely entitles you to get part of earnings. There are a range of stocks offered out there and also basing upon needs the stocks need to be purchased with great caution and also vigilance. Some shares allow you to be entitled to regular dividends while some have wonderful potential keeping future leads in mind. The type of supply you purchase need to be appropriate to your economic condition as well as care need to be taken not to over delight in the marketplace trading. The stock exchange is a very fascinating area when costs of supplies and shares falls or increase, people are seen clambering about like nuts. The volatility of stock exchange is very high and it fluctuates significantly within short spans of time. Supplies are traded via stock market like BSE (Bombay Stock Exchange) or NSE (National Stock Exchange). In India BSE holds the leading setting as it has the largest number (thirty) of blue chip companies provided in it. These consist of business like BHEL, Bharti Airtel, HDFC, ICICI, L&T, ITC, NTPC, Mahindra & Mahindra, reliance, TCS, Wipro etc. They represent about one fifth of the capitalization of the Indian exchange and also are thus provided the should have interest. The way in which various capitalists operate depends upon the knowledge of the inside working of the share market. Some like to take their personal choices while others favor availing services of a professional stock broker company which specializes in providing handy clever tips, cool calls, intraday calls, intraday pointers, as well as option pointers and so on various on the internet stock broker firms provide value added services like suggestions with 99.99% precision which will help high end people take crucial choices at the nick of the moment. There goes a lot of study and also analysis right into providing pointers as well as calls. The companies do a lot of study on business profile, firm history and various other current market fads to predict future surge or fall in prices of shares. The Indian securities market is very strong which can be proved by the truth that it was not impacted by the global economic crisis which struck most of the world. Hence obtaining knowledge through trading continuously will lead you to additional elevation. Individuals will gradually be able to comprehend the fundamental nature of the market as well as will slowly but regularly develop a sense of risk measuring qualities as time flows. Thus taking computed threats is the lineup. And also one must always keep in mind not to succumb to false pretensions of small time center males, false rumors or rip-offs that typically emerge out of nowhere. Write-up Source: http://EzineArticles.com/3882131

DISCLAIMER : Investments in securities market are subject to market risks, read all the related documents carefully before investing.

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Markets extend correction from life-time peaks

Foreign fund outflows and crude oil prices hovering above USD 80 per barrel also weighed on equity markets.

MUMBAI: Equity benchmark indices declined in early trade on Monday, extending corrections from their life-time peaks for the second consecutive session, dragged down by index heavyweight Reliance Industries after the company missed street estimates due to weak performance in oil-to-chemicals (O2C) business.

Foreign fund outflows and crude oil prices hovering above USD 80 per barrel also weighed on equity markets as traders were awaiting the US Federal Reserve’s monetary policy decision to be announced this week.

The 30-share BSE Sensex declined 87.24 points or 0.13 to 66,597.02.

The broader NSE Nifty fell 10.65 points or 0.05 per cent to 19,734.35.

From the Sensex pack, Kotak Mahindra tanked more than 3 per cent and Reliance tumbled close to 2 per cent in the initial trade.

“RIL Q1 Results misses street estimates due to weak performance in oil-to-chemicals (O2C) business on account of a sharp reduction in crude oil prices and lower price realisation of downstream products,” said Prashanth Tapse, Sr VP Research analyst at Mehta equities Ltd.

JSW Steel, Tata Steel and Tech Mahindra were other laggards.

On the other hand, Mahindra & Mahindra and Larsen & Toubro gained more than 1 per cent.

IndusInd Bank, Axis Bank and Tata Motors were among other gainers.

Of the 30 stocks, 18 were trading in green while on the 50-stock index Nifty, 27 were in positive territory.

“The near-term market trend will be influenced by a host of factors like the recent Q1 results, some major results expected this week and policy decisions like the Fed meeting outcome on Wednesday,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said in his market outlook.

Vijayakumar further noted that the Fed is likely to raise the rate by 25 bp on Wednesday, but the market movement will be decided by the commentary of the Fed chief regarding future inflation and rate trends.

Investors may wait and watch these events unfold.

On Friday, both the indices settled more than 1 per cent lower in the previous session, snapping their six-day record-breaking rally.

The BSE benchmark tumbled 887.64 points or or 1.31 per cent to settle at 66,684.26 on Friday.

NSE Nifty fell by 234.15 points or 1.17 per cent to end at 19,745.In Asian markets, Nikkei 225 was up 1.38 per cent, while the stock markets in Hong Kong and Shanghai were not trading.

The US markets ended broadly higher on Friday.

Global oil benchmark Brent crude was trading 0.14 per cent lower at USD 80.96 a barrel.

Foreign Institutional Investors (FIIs) were sellers on Friday as they sold equities worth Rs 1,998.77 crore, according to exchange data.

Infosys stock price target: Infosys tanks 7.7% on downgrades; leads sell-off in the IT world

Mumbai: Shares of software services giant Infosys plunged 7.7% on Friday – their biggest single-day fall in over three months – after the company slashed its FY24 revenue guidance, triggering downgrades from analysts. The disappointment in earnings forecasts by the sector leaders sparked a sell-off in shares of other companies such as TCS, Wipro, HCL Technologies and Tech Mahindra with the NSE…

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WHY CHOOSE A BANK NIFTY OPTION TRADING STRATEGY?

Those who have been into bank nifty option trading have devised multiple bank nifty strategies which will help them make better trades in the future. Due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

Launched in 2000 by India Index Service and Product Limited (IISL), Bank Nifty is NSE’s sectoral index and is one of the most heavily traded indexes in the F&O market. One of the highest attractions in bank nifty trading is that it is highly volatile and allows traders to generate a quick profit. Also, due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

This index trading option is brilliant as it comprises 12 highly capitalized and the most liquid banking sector stocks traded in NSE. Those who have been into bank nifty option trading for years have devised multiple bank nifty strategies which will help them make better trades in the future.

Whenever looking for ‘my trade options,’ bank nifty holds great importance as, here, the share prices and values are displayed on a real-time basis during the NSE trading hours. A bank nifty option strategy can be curated for various purposes like introducing index funds, new ETFs, and other structured products and benchmarking fund portfolios. The top 10 bank nifty companies with the highest weightage are – AU Small Finance Bank, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, and Punjab National Bank.

Top 4 bank nifty option buying strategy

With the growing trading margin and awareness, options trading has significantly increased among traders. Nifty and bank nifty are the popular indices in option derivatives, and their improved buying strategy results from the opportunity it offers to make money. Below are the top 4 bank nifty strategies that every trader must know.

Naked puts or calls – Buy the put option during the market’s low point. The more the nifty falls, the higher profits are generated. Buying the call option during the market’s high end is a good strategy. The more the market rises, the higher profits will be incurred. Putting a stop loss is mandatory in this strategy.

Bull call spread – If you wish to buy bank nifty stocks during the market rise, using the bull call spread strategy is the best option. This strategy gives a good amount of money when the index goes up.

Short straddle – This bank nifty strategy generates good results when the market is in a defined range. Here the trader sells the money call option and a put option with the same strike price and expiry date. You grab the maximum profits when the index doesn’t show much movement. However, the losses are extreme when the bank nifty moves beyond the breakeven point.

Short iron butterfly – A good bank nifty strategy today will result in better outcomes for tomorrow. This strategy contradicts the risky short-straddle

strategy, as the losses here are less and much defined. Profit is also defined, and rewards are higher than risk.

What is the difference between nifty and bank nifty

Nifty is considered a much broader term, and bank nifty is a part of nifty. Like bank nifty, the nifty index also consists of the most liquid and highly capitalized stocks from the National Stock Exchange. However, the major difference is that nifty consists of the top 50 stocks from varied sectors like automobile, pharma, IT, bank, etc., hence also called Nifty50. On the other hand, bank nifty, also known as Nifty Bank, consists of the top 12 stocks only from the banking sector, which is a part of Nifty50.

If you are looking for an excellent strategy to invest in index funds, nothing is better than nifty. Bank nifty strategy is profitable primarily for intraday trading to book short-term profits. Bank nifty is more volatile than nifty. For example – If nifty rises to 1%, then bank nifty goes 1.5% higher. Although bank nifty has more potential to make profits, the risk is also higher than nifty.

For options trading in nifty, one lot = 50 quantities, and for bank nifty, it is 25 quantities. As nifty consists of stocks from multiple sectors, it depicts the overall economy’s performance. On the contradictory, bank nifty indicates only the banking sector’s performance.

Choosing to trade between bank nifty and nifty options is tricky. Still, if you are a beginner, maximum traders trade in the nifty index is a better option as it is less volatile and much more familiar. If you stand somewhere between intermediate and advanced trading levels, traders prefer bank nifty as it’s more rewarding and makes them reap higher benefits due to more considerable volatility.

bank nifty logicalnivesh

Those who have been into bank nifty option trading have devised multiple bank nifty strategies which will help them make better trades in the future. Due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

Launched in 2000 by India Index Service and Product Limited (IISL), Bank Nifty is NSE’s sectoral index and is one of the most heavily traded indexes in the F&O market. One of the highest attractions in bank nifty trading is that it is highly volatile and allows traders to generate a quick profit. Also, due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

This index trading option is brilliant as it comprises 12 highly capitalized and the most liquid banking sector stocks traded in NSE. Those who have been into bank nifty option trading for years have devised multiple bank nifty strategies which will help them make better trades in the future.

Whenever looking for ‘my trade options,’ bank nifty holds great importance as, here, the share prices and values are displayed on a real-time basis during the NSE trading hours. A bank nifty option strategy can be curated for various purposes like introducing index funds, new ETFs, and other structured products and benchmarking fund portfolios. The top 10 bank nifty companies with the highest weightage are – AU Small Finance Bank, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, and Punjab National Bank.

Top 4 bank nifty option buying strategy

With the growing trading margin and awareness, options trading has significantly increased among traders. Nifty and bank nifty are the popular indices in option derivatives, and their improved buying strategy results from the opportunity it offers to make money. Below are the top 4 bank nifty strategies that every trader must know.

Naked puts or calls – Buy the put option during the market’s low point. The more the nifty falls, the higher profits are generated. Buying the call option during the market’s high end is a good strategy. The more the market rises, the higher profits will be incurred. Putting a stop loss is mandatory in this strategy.

Bull call spread – If you wish to buy bank nifty stocks during the market rise, using the bull call spread strategy is the best option. This strategy gives a good amount of money when the index goes up.

Short straddle – This bank nifty strategy generates good results when the market is in a defined range. Here the trader sells the money call option and a put option with the same strike price and expiry date. You grab the maximum profits when the index doesn’t show much movement. However, the losses are extreme when the bank nifty moves beyond the breakeven point.

Short iron butterfly – A good bank nifty strategy today will result in better outcomes for tomorrow. This strategy contradicts the risky short-straddle

strategy, as the losses here are less and much defined. Profit is also defined, and rewards are higher than risk.

What is the difference between nifty and bank nifty

Nifty is considered a much broader term, and bank nifty is a part of nifty. Like bank nifty, the nifty index also consists of the most liquid and highly capitalized stocks from the National Stock Exchange. However, the major difference is that nifty consists of the top 50 stocks from varied sectors like automobile, pharma, IT, bank, etc., hence also called Nifty50. On the other hand, bank nifty, also known as Nifty Bank, consists of the top 12 stocks only from the banking sector, which is a part of Nifty50.

If you are looking for an excellent strategy to invest in index funds, nothing is better than nifty. Bank nifty strategy is profitable primarily for intraday trading to book short-term profits. Bank nifty is more volatile than nifty. For example – If nifty rises to 1%, then bank nifty goes 1.5% higher. Although bank nifty has more potential to make profits, the risk is also higher than nifty.

For options trading in nifty, one lot = 50 quantities, and for bank nifty, it is 25 quantities. As nifty consists of stocks from multiple sectors, it depicts the overall economy’s performance. On the contradictory, bank nifty indicates only the banking sector’s performance.

Choosing to trade between bank nifty and nifty options is tricky. Still, if you are a beginner, maximum traders trade in the nifty index is a better option as it is less volatile and much more familiar. If you stand somewhere between intermediate and advanced trading levels, traders prefer bank nifty as it’s more rewarding and makes them reap higher benefits due to more considerable volatility.

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Mahindra Finance shares crack 4% after hitting 52-week high; brokerages mixed

Mahindra Finance shares crack 4% after hitting 52-week high; brokerages mixed

Mahindra Finance Share Price: Shares of Mahindra & Mahindra Financial Services Limited on Tuesday, January 3, hit fresh 52-week high of Rs 247 on NSE and Rs 247.05 on BSE on the back of heathy disbursement numbers in December. The stock, however, surrendered the gains due to profit booking. At 12:40, it traded in negative bias to quote Rs 231.25 apiece on NSE, down by more than 3 per…

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Why choose a bank nifty option trading strategy?

Those who have been into bank nifty option trading have devised multiple bank nifty strategies which will help them make better trades in the future. Due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

Launched in 2000 by India Index Service and Product Limited (IISL), Bank Nifty is NSE’s sectoral index and is one of the most heavily traded indexes in the F&O market. One of the highest attractions in bank nifty trading is that it is highly volatile and allows traders to generate a quick profit. Also, due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

This index trading option is brilliant as it comprises 12 highly capitalized and the most liquid banking sector stocks traded in NSE. Those who have been into bank nifty option trading for years have devised multiple bank nifty strategies which will help them make better trades in the future.

Whenever looking for ‘my trade options,’ bank nifty holds great importance as, here, the share prices and values are displayed on a real-time basis during the NSE trading hours. A bank nifty option strategy can be curated for various purposes like introducing index funds, new ETFs, and other structured products and benchmarking fund portfolios. The top 10 bank nifty companies with the highest weightage are – AU Small Finance Bank, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, and Punjab National Bank.

Top 4 bank nifty option buying strategy

With the growing trading margin and awareness, options trading has significantly increased among traders. Nifty and bank nifty are the popular indices in option derivatives, and their improved buying strategy results from the opportunity it offers to make money. Below are the top 4 bank nifty strategies that every trader must know.

Naked puts or calls – Buy the put option during the market’s low point. The more the nifty falls, the higher profits are generated. Buying the call option during the market’s high end is a good strategy. The more the market rises, the higher profits will be incurred. Putting a stop loss is mandatory in this strategy.

Bull call spread – If you wish to buy bank nifty stocks during the market rise, using the bull call spread strategy is the best option. This strategy gives a good amount of money when the index goes up.

Short straddle – This bank nifty strategy generates good results when the market is in a defined range. Here the trader sells the money call option and a put option with the same strike price and expiry date. You grab the maximum profits when the index doesn’t show much movement. However, the losses are extreme when the bank nifty moves beyond the breakeven point.

Short iron butterfly – A good bank nifty strategy today will result in better outcomes for tomorrow. This strategy contradicts the risky short-straddle

strategy, as the losses here are less and much defined. Profit is also defined, and rewards are higher than risk.

What is the difference between nifty and bank nifty

Nifty is considered a much broader term, and bank nifty is a part of nifty. Like bank nifty, the nifty index also consists of the most liquid and highly capitalized stocks from the National Stock Exchange. However, the major difference is that nifty consists of the top 50 stocks from varied sectors like automobile, pharma, IT, bank, etc., hence also called Nifty50. On the other hand, bank nifty, also known as Nifty Bank, consists of the top 12 stocks only from the banking sector, which is a part of Nifty50.

If you are looking for an excellent strategy to invest in index funds, nothing is better than nifty. Bank nifty strategy is profitable primarily for intraday trading to book short-term profits. Bank nifty is more volatile than nifty. For example – If nifty rises to 1%, then bank nifty goes 1.5% higher. Although bank nifty has more potential to make profits, the risk is also higher than nifty.

For options trading in nifty, one lot = 50 quantities, and for bank nifty, it is 25 quantities. As nifty consists of stocks from multiple sectors, it depicts the overall economy’s performance. On the contradictory, bank nifty indicates only the banking sector’s performance.

Choosing to trade between bank nifty and nifty options is tricky. Still, if you are a beginner, maximum traders trade in the nifty index is a better option as it is less volatile and much more familiar. If you stand somewhere between intermediate and advanced trading levels, traders prefer bank nifty as it’s more rewarding and makes them reap higher benefits due to more considerable volatility.

Nifty, Sensex End Little Changed Amid Volatility; Midcap Hits Record High: Market Wrap

India's benchmark indices ended little changed amid volatility on Wednesday, ahead of the Fed Chair's speech at the Macroeconomics and Monetary Policy Conference. However, the Nifty Midcap 150 hit a fresh lifetime high during the day and settled higher for the eighth day in a row. The Nifty Smallcap 250 closed with gains for the ninth day in a row. The NSE Nifty settled 18.65 points, or 0.083%, , lower at 22,434.65, and the S&P BSE Sensex declined 27.09 points, or 0.037%, to end at 73,876.82. Market participants will closely monitor Powell's comments to get fresh cues about the U.S. central bank's policy outlook in the backdrop of robust economic data and high inflation weighing on rate cut expectations. The Nifty 50 fell to an intraday low of 22,346 and the Sensex touched a low of 73,540.27 on Wednesday. "Weak Asian and U.S. market cues coupled with caution ahead of the RBI's monetary policy announcement on Friday saw domestic equities end flattish with a negative bias. Surging crude oil prices and an uptick in US bond yields are making investors nervous, with FIIs offloading local shares further dampening the sentiment,” Prashanth Tapse, senior vice president research, Mehta Equities Ltd. Reliance Industries Ltd., Kotak Mahindra Bank Ltd., Larsen & Toubro Ltd., Nestle India Ltd., and ICICI Bank Ltd. contributed to the gains in Nifty. Tata Consultancy Services Ltd., Bharti Airtel Ltd., Axis Bank Ltd., NTPC Ltd., and Bajaj Finance Ltd. weighed on the index. On NSE, five sectors advanced, three remained flat, and four declined. The NSE Nifty Realty fell the most among peers, while the NSE Nifty PSU Bank became the top performing sector. check this out www.optionperks.com

Why choose a bank nifty option trading strategy?

Those who have been into bank nifty option trading have devised multiple bank nifty strategies which will help them make better trades in the future. Due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

Launched in 2000 by India Index Service and Product Limited (IISL), Bank Nifty is NSE’s sectoral index and is one of the most heavily traded indexes in the F&O market. One of the highest attractions in bank nifty trading is that it is highly volatile and allows traders to generate a quick profit. Also, due to its high co-relation and weightage in the NSE benchmark index, Nifty, Bank Nifty gained great significance among investors.

This index trading option is brilliant as it comprises 12 highly capitalized and the most liquid banking sector stocks traded in NSE. Those who have been into bank nifty option trading for years have devised multiple bank nifty strategies which will help them make better trades in the future.

Whenever looking for ‘my trade options,’ bank nifty holds great importance as, here, the share prices and values are displayed on a real-time basis during the NSE trading hours. A bank nifty option strategy can be curated for various purposes like introducing index funds, new ETFs, and other structured products and benchmarking fund portfolios. The top 10 bank nifty companies with the highest weightage are – AU Small Finance Bank, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, and Punjab National Bank.

Top 4 bank nifty option buying strategy

With the growing trading margin and awareness, options trading has significantly increased among traders. Nifty and bank nifty are the popular indices in option derivatives, and their improved buying strategy results from the opportunity it offers to make money. Below are the top 4 bank nifty strategies that every trader must know.

Naked puts or calls – Buy the put option during the market’s low point. The more the nifty falls, the higher profits are generated. Buying the call option during the market’s high end is a good strategy. The more the market rises, the higher profits will be incurred. Putting a stop loss is mandatory in this strategy.

Bull call spread – If you wish to buy bank nifty stocks during the market rise, using the bull call spread strategy is the best option. This strategy gives a good amount of money when the index goes up.

Short straddle – This bank nifty strategy generates good results when the market is in a defined range. Here the trader sells the money call option and a put option with the same strike price and expiry date. You grab the maximum profits when the index doesn’t show much movement. However, the losses are extreme when the bank nifty moves beyond the breakeven point.

Short iron butterfly – A good bank nifty strategy today will result in better outcomes for tomorrow. This strategy contradicts the risky short-straddle

strategy, as the losses here are less and much defined. Profit is also defined, and rewards are higher than risk.

What is the difference between nifty and bank nifty

Nifty is considered a much broader term, and bank nifty is a part of nifty. Like bank nifty, the nifty index also consists of the most liquid and highly capitalized stocks from the National Stock Exchange. However, the major difference is that nifty consists of the top 50 stocks from varied sectors like automobile, pharma, IT, bank, etc., hence also called Nifty50. On the other hand, bank nifty, also known as Nifty Bank, consists of the top 12 stocks only from the banking sector, which is a part of Nifty50.

If you are looking for an excellent strategy to invest in index funds, nothing is better than nifty. Bank nifty strategy is profitable primarily for intraday trading to book short-term profits. Bank nifty is more volatile than nifty. For example – If nifty rises to 1%, then bank nifty goes 1.5% higher. Although bank nifty has more potential to make profits, the risk is also higher than nifty.

For options trading in nifty, one lot = 50 quantities, and for bank nifty, it is 25 quantities. As nifty consists of stocks from multiple sectors, it depicts the overall economy’s performance. On the contradictory, bank nifty indicates only the banking sector’s performance.

Choosing to trade between bank nifty and nifty options is tricky. Still, if you are a beginner, maximum traders trade in the nifty index is a better option as it is less volatile and much more familiar. If you stand somewhere between intermediate and advanced trading levels, traders prefer bank nifty as it’s more rewarding and makes them reap higher benefits due to more considerable volatility.