Bank Nifty Tips and Strategies for Options Trading

Bank Nifty Tips and Strategies
Bank Nifty Tips and Strategies

People who trade on index options should know how much it is risky. They look for Bank Nifty tips and strategies for options trading. It is very important to follow some strategies before investing in bank nifty options. The fluctuating nature of this index makes it so risky.

So to trade in bank nifty keep some points in your mind.

If you are looking for bank nifty tips and strategies, then you have come to the right place to find them. This article will provide you with some unique and best technical tips for bank nifty. While trading on bank nifty these tips will make your profit potential.

To trade online open a Demat account on Zerodha.

Bank Nifty

Bank Nifty is one of the popular indices in the Indian share market. After launching in 2009, many investors started investing in this index. Bank Nifty is the index of the 12 highest capitalized and most liquid banking sector stocks. Over the years, the traders who trade on bank nifty options have a redundancy plan and strategies to trade. They try to find advice on bank nifty trade.

Bank nifty consists of 25 units in a lot. Whenever you buy (Call) and sell (Put) you have to enter the lot amount. It doesn’t trade like stocks using per stock to stock trade. Trading on bank nifty can be done on any brokerage platform.

Bank Nifty Tips and Strategies

Trade on bank nifty is extremely risky, of its high volatility nature of it. Many traders or beginners often fall into the decoy of hype. People can’t resist their allurement from the quick profit.

As the high volatile character bank nifty options appealing to traders for making a quick profit. The price can jump to 100 – 300 points with in a few minutes. This index depends on the banking sector stocks. And mainly the private sector bank monitors its movement more than govt. banks. So it’s price movement trend depends on how these stocks behave like HDFC Bank, AXIS Bank, ICICI Bank etc. Some time any government offers or any relief may boost up the price.

People doing intraday can easily get a 2% – 3% profit on bank nifty and this margin is fair enough for intraday traders. You can easily full fill all your dreams.

This is the benefit of bank nifty. But there are drawbacks also there. Let’s find out the cons of bank nifty.

As the volatile nature brings you profits, thus it is more impactful when the price falls. If you can’t exit your position at your targeted level or if the market behaves reverse of your calculation you can lose more than 90% of your invested capital.

So to make profits or not to lose on bank nifty just follow a few tips and strategies.

Bank Nifty Tips and Strategies
Bank Nifty Tips and Strategies


We will recommend some strategies. But you can set up your own strategies also. These are the strategies.

1. Chart Analysis

Always try to follow the chart patterns. It is good to use 5 min or 15 min chart. Either market is bullish or bearish, you follow up this strategy.

When the market is bullish and the market opens with a gap up you should identify the first two candles where it opens. If both behave similarly you can pick one point to buy, then buy at the top point of the second candle.

Similarly when the market is bearish follow the last two candles and pick up one at the bottom level.

2. Set Stop Loss

While trading on bank nifty options or intraday stop loss is very much important. It reduces the huge loss possibility and saves you from an extremely volatile situation. When you buy in the bullish market set the stop loss at the bottom level of the candle where you buy.

When you are doing short selling and the market is bearish set the stop loss at the top level of the candle where you pick the point.

3. Do Intraday

The high volatility makes the bank nifty options highly volatile. So holding your position overnight or long-term is highly risky. Always try to hold your positions for a short time. Just hold your position as per your targeted level. One more important, never look for the highest level to exit, it is safe to exit 10 – 15 points less than the high. Sometimes people often fall into this trap for over allurement.

4. Buy and Sell

Buying and selling depending on the market movement. If the market opens with a gap up or gap down it will fill the gap within that trading scission or in some days. You have to protect your self and your position when the market will start filling up its premiums.

When the market opens with a gap up wait for the level where the market will fill it then you can take your position. To know this just analyze 15 min chart. If the market is bullish then wait for the candle where the market starts going upside movement. Then you can place a sell order.

If the market opens with a gap down the same will happen here. Wait for that candle to fill the gap and then you can place a buy order. At this situation stop loss becomes very curtail. Because many market will not go with the trend. Then stop loss can help you from the fall.

5. Advisor

People often seek for an advisor to trade on bank nifty options. It now becomes a business to provide advice. But there are so many fake advisors also. So to choose an advisor just know of their facilities and history of success before engaging with them.

Final Words

As the high volatility nature Bank Nifty options are much attractive to traders who wants to earn a quick profit. But it is also high risk, as you may lose your money too. So if you’re interested to trade in Bank Nifty then you can do it with the advice of any experts. If you can keep your patients and target for small returns then you can earn profits from it.

I am Mr. Arpan Dutta, from West Bengal, India, an investor in stocks and a financial advisor since last 10 years. I am very much interested in finance and every day I'm researching many financial topics. I have noticed that many common people can't figure out financial topics properly. So I have opened this website to help the people by writing articles on many financial, insurance, and stock market updates, financial advice, and also about the world economy, etc. I will post articles regularly on my website So keep following my website. THANKING YOU.

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