BankNifty Levels : BankNifty is a Index of Indian Stock Market Exchange, It is traded in future and options segments with separate Banknifty lot size Bank Nifty trading is allowed in bank nifty futures only.
BankNifty Futures Option >Bank Nifty is also a free float Indian Stock Market cap weighted index with focus purely on banking shares. The Bank Nifty is already one of the most actively traded index futures and options segments.
BankNifty Today|(Nifty Bank Today Live) BANKNIFTY Chart Today
We want to explain some BankNifty Levels,trading guidelines, Please implement our BankNifty trading guidelines. Trade management is more important than successful trading tips.
Some Basic Important Points Of Bank Nifty
- Bank Nifty trading is allowed in bank nifty futures only.
- Bank nifty lot size is 25.
- We give bank nifty tips for current month bank nifty futures.
- Stoploss must we have to place stoploss order in system, not in your mind.
- Without stoploss order trading is nothing but suicide attempt.
- If stoploss trigger just exit don’t try to average at lower prices.
- We give bank nifty tips in live market, no pre market tips.
- For safe traders We are recommending to trade one lot per Rs.50,000 of your investment.
- Small difference is common, you can execute trades with small difference, do not look for exact recommended entry prices and target prices.
- Bank Nifty tips we give with live recommendation price stoploss and targets.
- We prefer to give bank nifty tips with small stoploss.
- If you are ready to take Rs.5,000 risk per trade.
- If bank nifty stoploss is 20 points you can trade 25 bank nifty (10 lots).
- If bank nifty stoploss is 30 points you can trade 175 bank nifty (7 lots).
- If bank nifty stoploss is 40 points you can trade 125 bank nifty (5 lots).
- In this way we can manage our trade quantity with calculated risk.
- Trade with calculated risk with discipline.
- Don’t trade more than your risk taking capacity because brokers are allowing much exposure.
- Before you start bank nifty trading, decide your risk taking capacity per trade.
- Book minimum 50% quantity on target one, don’t look for higher targets to book all quantity.
- Sometimes price go to target one then come back.
- Profits on screen is notional profit, booked profits are real profits.
What is meaning of Bank Nifty trade reverse
>>For example if we buy and stoploss trigger, sell at stoploss price then buy position will become sell position,Easy method to reverse to trade: just place double quantity stoploss order.
How its works Bank Nifty Tips:
- If you trade 4 lots bank nifty (100 bank nifty), you need around Rs.1,00,000 margin money.
- If we manage 400 points profit per month (after deducting losses), We can earn Rs.40,000 means 40% profit on our investment.
- If we manage 600 points profit per month (after deducting losses), We can earn Rs.60,000 means 60% profit on our investment.
- If we manage 800 points profit per month (after deducting losses), We can earn Rs.80,000 means 80% profit on our investment.
- If we manage 1000 points profit per month (after deducting losses), We can earn Rs.1,00,000 means 100% profit on our investment.
- Bank nifty traders have to trade very quickly; bank nifty is sharp, 10-20 points will move very sharply.
BankNifty Lot Size
Trading in Bank Nifty is done only in features and options. Stocks trading in the option segment are given a fixed lot. If we talk about Bank Nifty Option Trading, the lot size of Bank Nifty is 25.
BankNifty Historical Data: You Can Check BankNifty Historical Chart, or BankNifty Historical data with the help of Moneycontrol Website Or MoneyControl App BankNifty Moneycontrol.
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BankNifty Options
An BankNifty 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 BankNifty options contracts are European style and cash settled and are based on the BANKNIFTY index.
Contract Specifications & Security descriptor
The security descriptor for the BANKNIFTY options contracts is:
- Market type : N
- Instrument Type : OPTIDX
- Underlying : BANKNIFTY
- Expiry date : Date of contract expiry
- Option Type : CE/ PE
- Strike Price: Strike price for the contract
- Instrument type represents the instrument i.e. Options on Index.
- Underlying symbol denotes the underlying index, which is BANKNIFTY
- Expiry date identifies the date of expiry of the contract
- Option type identifies whether it is a call or a put option., CE – Call European, PE – 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.
BANKNIFTY weekly options contracts have 7 weekly expires excluding the expiry week of monthly contract. New serial weekly options contract is introduced after expiry of the respective week’s contract.
Expiry day
BANKNIFTY monthly options contracts expire on the last Thursday of the expiry month and weekly options contracts expire on every Thursday of the week. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
Strike Price Intervals
The number of contracts provided in options on index is based on the range in previous day’s closing value of the underlying index and applicable as per the following table:
| INDEX LEVEL | STRIKE INTERVAL | NO OF STRIKES |
|---|---|---|
| All Levels | 100 | 30-1-30 |
Trading Parameters & Contract size
The value of the option contracts on Nifty may not be less than Rs. 5 lakhs at the time of introduction. The permitted lot size for futures contracts & options contracts shall be the same for a given underlying or such lot size as may be stipulated by the Exchange from time to time.
Price steps
The price step in respect of BANKNifty options contracts is Re.0.05.
Base Prices
Base price of the options contracts, on introduction of new contracts, would be the theoretical value of the options contract arrived at based on Black-Scholes model of calculation of options premiums.
The options price for a Call, computed as per the following Black Scholes formula:
C = S * N (d1) – X * e– rt * N (d2)
and the price for a Put is : P = X * e– rt * N (-d2) – S * N (-d1)
where :
d1 = [ln (S / X) + (r + σ2 / 2) * t] / σ * sqrt(t)
d2 = [ln (S / X) + (r – σ2 / 2) * t] / σ * sqrt(t)
= d1 – σ * sqrt(t)
C = price of a call option
P = price of a put option
S = price of the underlying asset
X = Strike price of the option
r = rate of interest
t = time to expiration
σ = volatility of the underlying
N represents a standard normal distribution with mean = 0 and standard deviation = 1
ln represents the natural logarithm of a number. Natural logarithms are based on the constant e (2.71828182845904).
Rate of interest may be the relevant MIBOR rate or such other rate as may be specified.
The base price of the contracts on subsequent trading days, will be the daily close price of the options contracts. The closing price shall be calculated as follows:
- If the contract is traded in the last half an hour, the closing price shall be the last half an hour weighted average price.
- If the contract is not traded in the last half an hour, but traded during any time of the day, then the closing price will be the last traded price (LTP) of the contract.
If the contract is not traded for the day, the base price of the contract for the next trading day shall be the theoretical price of the options contract arrived at based on Black-Scholes model of calculation of options premiums.
Quantity freeze
The applicable quantity freeze limit shall be based on the level of the underlying index as per the following table:
| INDEX LEVEL | ||
|---|---|---|
| FROM | TO | QUANTITY FREEZE LIMIT |
| 0 | 5750 | 15000 |
| 5751 | 8625 | 10000 |
| 8626 | 11500 | 7500 |
| 11501 | 17250 | 5000 |
| > 17250 | 2500 |
Order type/Order book/Order attributes
- Regular lot order
- Stop loss order
- Immediate or cancel
- Spread order
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