Bank Nifty is designed to derive returns by reflecting the aggregate performance of the most liquid and large capitalised Indian bank stocks. The index is calculated using free-float weighted methodology. It consists of all banking stocks which are available for trading on NSE & BSE for a minimum period of one year. STOCK returns are converted to GROSS INDEX returns, after adjusting for dividends and corporate action, and the gross index return is further divided by tracking error to get the final GROSS RETURN .
The Nifty Bank Index is a stock market index of 50 large and most liquid Indian bank stocks. It is part of the Nifty 50 group, and reflects the broad-based nature of banking in India.
This trading option is based on nifty option calls. The nifty call option buyer has the right to buy nifty futures at a pre-determined price, for a specific time period. But, before buying the nifty call options entering into an agreement with the seller (i.e. bank or brokerage), one needs to acknowledge some pertinent details like, the cost of the nifty call options, risk versus return profile of these options i.e. how much you stand to gain if your option gets exercised, and finally before entering into any agreement look out for the exit point (you don’t want to hold it till expiry).
Bank nifty chart has formed “Rising channel” pattern. Bank Nifty traded higher, reaching a new historical high yet again and closed in green. Upside remains possible.
The daily chart of bank nifty shows that the index slipped into major support level at 38500, which acted as a strong pivot for rebound. Prices are again trading above the crucial resistance level at 38700. However, there is no confirmation yet of further upward move. The prices are expected to remain above the 38700 mark with further rise to be capped by resistance level at 39000. A break below 38500 can be considered as the final phase of correction before more higher levels.
The chart indicates that the bank nifty is trading in an up trend. The Index retest previous high of 39576, when it breaks through with closing price above 39584 then bulls are in control. Near term bottom support comes in at 39863 if the index fall below then target will be dropped down to 39634/37669/36953. On the other hand, key resistances are placed at 39466/39578/39656.
The daily chart of NIFTY-50 shows that the index is consolidating with the support zone set by 38700 – 38800. The next upside target can be seen at 40800 – 40915. Short term traders can enter the long positions on a close (UTC) above 38800 targeting 40800 – 40915 and stop loss at 38500.
Stock Market Nifty Chart- The chart shows that the nifty future, after hitting fresh highs at 10244.3 it is again heading towards 10000 as seen from the chart. It has already touched base at 19972 and last traded as low as 18277.8 today. With the levels being tested profit booking is expected near 10000 levels.
