How Nifty Plays a Complete Role in Trading


Are you having any kind of problem on investing your money in NIFTY then i am here to solve your problems related to the topic of share market in this blog we are going to study in a brief about Nifty and how bank nifty option in trading plays an important role in trading, first of all  we all will study about Nifty and what is bank nifty option in trading.



What is Nifty?

Basically we all call it nifty but it's actually known as the NIFTY 50 which was launched in 1st April 1996 and it is owned and managed by India Index Services and Products (IISL).

The NIFTY 50 covers total of 12 sectors of the Indian economy. During 2008-12, NIFTY 50

Index share of NSE market capitalization fell from 65% to 29% because of the rise of sectorial indices as NIFTY Bank, NIFTY IT, NIFTY Pharma, NIFTY Next 50, etc. The NIFTY 50 Index gives 29.70% of its shares to financial services, 0.73% weightage to industrial manufacturing and 0% weightage to agricultural sector.

The NIFTY 50 index is a free float market capitalization weighted index. The index initially was calculated on full market capitalization method. From June 26, 2009, the computation has been changed to free float methodology. The base period for the CNX Nifty index is November 3,  1995, which completed one year of operations of National Stock Exchange Equity Market  Segment. The base value of the index has been set at 1000 and a base capital of Rs 2.06 trillion.

These are some of the things we must need to know about NIFTY before entering into the field of share market.

Now i am going to tell you that how bank nifty option in trading plays an important role in the stock market.

How trading in bank NIFTY option makes a sense?

As we all know that the Nifty 50 Index is a basket of 50 stocks. These stocks are selected to represent a wide section of the India economic sectors. This makes Nifty a good representative of the bigger economic activity in all over India. This naturally means if the general economic  activity is going up or at least expected to go up then Nifty’s value will also goes up, and vice  versa. This also makes trading in bank Nifty Future a much better choice as compared to any single stock futures.


This is all about the NIFTY and how does bank NIFTY option in trading plays an important role in the field of stock market.

I hope friends i could you help you in that you as u wanted and solved all your problems about the stock market by telling in brief about this, beside this if you wants to know anything about share market or NIFTY then friends please go to the comment section and drop a comment about what you want to know, i am waiting for your comments.

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