Bank Nifty is a popular index in the Indian stock market. Investors earn a good return from bank nifty on intraday trading. Bank Nifty is a banking sector index. The high-weighted banking sector stocks are listed in Bank Nifty. It is a highly volatile script. Before trading in the bank nifty it is important to know how you can Predict Bank Nifty Movement For the Next Day.
For its volatile nature bank nifty has a great potential for a higher return in a quick time. So investors got more attracted to it, as they can earn more than 100% within an hour. So making a strategy for bank nifty intraday trading is very important.
In this article, I will discuss how you can Predict Bank Nifty Movement For the Next Day. Let’s start.
How to Predict Bank Nifty Movement For the Next Day
- Bank Nifty is the most liquid indices and largest banking stocks index. 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.
- You can use the charting, open interest, or put call ratio strategy to predict bank nifty movement for the next day. Also, the global market can impact its movement. So before the market opening analyze the global market trend and then take your position.
- Remember, the most important is to exit your position rather than where you enter. To go for a long term investor try to look for a short and sure target. That will lead you to long term profits.
There are top 8 Bank Stocks that decide the direction of Bank Nifty
| Company’s Name | Weight(%) |
|---|---|
| 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 |
Make a Strategy
- Always try to follow the chart patterns. It is good to use 5 min or 15 min chart to analyze bank nifty movement. If the 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.
Aware of Market
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.
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.
Earn From Bank Nifty in Intraday
- 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.
How to Trade on Bank Nifty
To trade on bank nifty options you need to open a Demat account. First search a best online discount broker. Then do all the procedure and do the e-kyc and fill all the requirements. After that your account will be activated. Then add funds in your demat account. Finally active the F&O segment. It will need 24 hours to get activated. After it successfully activating you can start trade on Bank Nifty options.
Final Words
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.
Thank you for reading this article.
Wish you safe and profitable trade.
If you have any queries then you can contact us at: [email protected]
FAQs
1. How do you know if bank Nifty will go up or down?
To know the bank nifty gap up or gap down you can use the simple moving average or open interest.
You can read this article How to predict gap up or gap down of bank nifty?
2. Can we predict bank Nifty?
Yes we can predict bank nifty options. But some times the prediction gone wrong when the market moves opposite direction.