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Bank Nifty Future is a derivative contract tradedon National Stock Exchange of India (NSE) whose underlying isBank Nifty Index. This means that Bank Nifty futureswill derive its value from the BankNifty index which in turnis dependent upon the movement of top banking stocks in theindex.
In this manner, what is Banknifty future?
Bank Nifty represents the 12 most liquid andlarge capitalised stocks from the banking sector which trade on theNational Stock Exchange (NSE). It provides investors and marketintermediaries a benchmark that captures the capital marketperformance of Indian banking sector.
- ICICI Bank Ltd. Allotment of ESOP.
- IndusInd Bank Ltd. Analysts.
- Punjab National Bank. Updates.
- The Federal Bank Ltd. Strikes.
- Bank Of Baroda. Shareholders meeting.
Subsequently, question is, how is Bank Nifty Future calculated?
To sell a same nifty options contract, tradershave to pay around = nifty future margin of 58,800/- plus7500 rupee premium amount = 66,300/- rupees. Nifty futureprofit loss will be calculated like this: Niftyfuture buy call 9800 to 9900 minted profit +100 points and its1 point is equivalent to 75 rupees.
Like the Nifty, those bullish on banks can buyBank Nifty futures comprising 30 shares, or buy a calloption on Bank Nifty. Bears can similarly short orsell Bank Nifty futures or buy a put option on theindex.