Bank Nifty is designed to derive returns. It reflects 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 that are available for trading on NSE and BSE. These stocks must have a minimum trading period of one year. We convert stock returns into gross index returns after adjusting for dividends and corporate actions. We then further process the gross index return and divide it by the tracking error to get the final gross return.
Nifty Bank Index
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. Before buying Nifty call options and entering into an agreement with the seller (such as a bank or brokerage), you must understand several important details. These include the cost of the options and their risk–return profile, which shows how much you can gain if the option is exercised. Most importantly, you must decide the exit point, since you should not hold the option until 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. Traders expect prices to stay above the 38,700 mark, while resistance at 39,000 is likely to limit any further rise. If the price breaks below 38,500, traders can consider it the final phase of correction before moving to higher levels.
About Chart Indicaters
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. As the price tests these levels, traders expect profit booking near the 10,000 level.