How To Predict Bank Nifty Movement?

Bank Nifty is one of the very important indices in Indian banking. If you are interested in Bank Nifty and investing in Bank Nifty weekly options then this article is going to help you know How To Predict Bank Nifty Movement? I have been investing in Bank Nifty options for a year. During this investing period, I made many mistakes in the initial phase of my trading.

Thus I have gathered some experience. Here in this article, I will discuss How To Predict Bank Nifty Movement?

How To Predict Bank Nifty Movement?
How To Predict Bank Nifty Movement?

What is Bank Nifty?

Nifty Bank which is also spoken as Bank Nifty, is made up of the most well-capitalized and liquid banking companies. In this index among all the companies, 12 companies’ stocks are of the Indian Banking sectors. Bank Nifty represents the investing benchmark for investors as it measures the total market performance of Indian Bank stocks.

There are two variants of the Bank Nifty index, which are Nifty Bank Total returns index and Bank Nifty TRI. It first appeared in 2003. Within the index the highest stocks are State Bank Of India, HDFC Bank LTD, Kotak Mahindra Bank LTD, ICICI Bank LTD, Axis Bank LTD.

There are top 8 Bank Stocks that decide the direction of Bank Nifty

Company’s NameWeight(%)
HDFC Bank Ltd. 23.07
ICICI Bank Ltd. 19.19
Housing Development Finance Corporation 15.35
Kotak Mahindra Bank Ltd. 9.52
State Bank Of India 6.98
Axis Bank Ltd. 6.56
Bajaj Finance Ltd. 5.61
Bajaj Finserv Ltd. 2.58
Top constituents weighted stocks

How To Predict Bank Nifty Movement?

One of the most significant indices, Bank Nifty, includes the biggest and the most liquid Indian banking equities. By observing the lagging and leading behavior of Bank Nifty, we can get examine the strength and weaknesses of Nifty’s trend. If anyone investing in stocks they should look before the market trend How To Predict Bank Nifty Movement?

As Bank Nifty index influences the banking sector stocks. The Bank Nifty indexes also have a favorable impact on all NSE sectoral indexes throughout both bull and beer market phases. Therefore, the investors and traders should consider the banking sector stocks as Bank Nifty impacts their behavior. The traders should make their investments and trade with it.

How To Predict Bank Nifty Movement?
How To Predict Bank Nifty Movement

How does Bank Nifty work?

Both pros and cons exist in Bank Nifty. Due to the high volatility, the investors are aiming for a rapid profit. This volatile behavior increases the likelihood of price jumps. More or less every Intra day trader looks for a 2% or more profit margin in quick succession which is considered a solid day’s profit. But many are trapped in this hype. Due to the high volatility of this script, it’s extremely risky. Its unpredictability nature makes it hazardous like crypto.

In this script the more chance you can make a profit also you may lose money. The timing is the key for index options. You must point out the right strike point and also you must come out at the right time otherwise the level will come down rapidly as much of speed when it goes up. If you are not able make profit at the right time, the chances of losing money is increased.

Movement of Bank Nifty

How To Predict Bank Nifty Movement? The movement of Bank Nifty depends on two factors. One is Technical and another is a fundamental factor.

Technical Factors :

  1. High rate of Call and Put option open interest
  2. Short-term positions
  3. High Call and Put OI of HDFC Bank, Axis Bank, Kotak Bank, ICICI Bank
  4. Put Call Ratio OI trend indicates a Bullish market. Also applies to the Bearish market
  5. Index 4 percentile, below 30 and above 90
  6. Cost of carrying movement, high discount, high premium mean range bound expectation
  7. Expiry day.
  8. Exponential Moving Average(EMA), 20,30,40,50,100,200 and 300
How To Predict Bank Nifty Movement?
How To Predict Bank Nifty Movement?

Fundamental Factor :

Top six Bank’s results: The top six banks HDFC Bank, ICICI Bank, Axis Bank, SBI, Kotak Bank, Induslnd Bank on a quarterly basis, net interest income, net interest margin and CASA ratio should be considered for these bank can help to understand the trend of the market.

Bond Yield Movement: A countries GDP, CPI, trade balance deteriorates bond prices fall and bond yield rise. When the bond yield rises the bank treasury falls, as from the share market point of view.

How to Trade on Bank Nifty

Trade on bank nifty is very easy. First, open a demat account through an online discount broker. Then go with the online procedure. When the account is opened then active the future and options segment by uploading any required document. After that, within 24 hours this segment will be activated. Then you can place an order on bank nifty options.

Key Tips:

The investors who are looking for a quick profit or aiming to get a profit margin of 2% or more on intraday trading, they are looking to make an investment in Bank Nifty. But for getting a rapid profit Bank Nifty is a seductive choice because its highly volatile nature makes it extremely risky. It is very important to know the Bank Nifty movement from any indicator.

Sometimes this volatile nature can be in your favor. If you are investing in this segment and you are knowing only of risk you may get afraid. But if you trade in the right Bank Nifty tips and good trading techniques in good ways, gradually you can improve your trading results and make your portfolio much more profitable.

If you have any queries then you can contact us at: [email protected]

Wish you safe and profitable tradè£.


How to predict bank nifty movement?

The easiest way to find the bank nifty movement of gap up or gap down is to use the chart pattern and the moving average. As bank nifty movement depends on the banking sector stocks, so you can follow those stocks movement and their trend. The height of weight stocks like HDFC Bank, ICICI Bank, AXIS Bank, etc. decides the moving direction of a bank nifty movement. Also, find the bars and candles on the chart and analyze the previous historical data to predict the moving direction.

How do you predict the market direction?

To predict the market you can use the PCR indicator. It is used for a long to predict the market direction. The simple ratio that can make the direction is the total number of put options divided by the call option. The PUT-CALL ratio can make resistance or a directional movement. You can make the best bank nifty strategy using the OI chart.

How do you predict gap up or gap down opening?

A gap up occurs when the next day’s opening price is higher than the previous day’s highest price or opens on a green bar on the chart. And a gap down occurs when the next day’s opening price is lower than the previous day’s lower price or the bar opens in red.

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.