In the Indian share market bank nifty is one of the popular indexes. Investing in bank nifty is very risky. Before investing in bank nifty you need to acquire knowledge of bank nifty’s movement prediction. Investing in bank nifty more unprofitable than the profit. Because bank nifty is so volatile script, thus investors lose money more than the profit. To earn from the script you have to invest in the right time.
So in this article, I will discuss what is the right time to trade on bank nifty.
Right Time to Trade on Bank Nifty
Timing is the key factor in trading. You have to grab that opportunity. Basically I suggest people to trade Intraday on bank nifty. Because this is the short time investment script. Not holding your position for a long time. Holding the position for over night or very long might cause a big loss. So to prevent this and protect your self take your position in the right time and exit from your position in the right time. I will guide by some steps how you can trade on bank nifty on the right time.
1. Take Position
- Taking your position at the right time, on the right level is important. I will suggest you to take your position within 1 hour after the the market opens, that is between 9:15 am to 10 am. This is a good time when you can your position. Because in this time market has fresh move and you can see if the market opens with a gap up or gap down.
- Another time at around 2 pm is when the market makes many of its movements and it’s near about the last movement before the market closes. Then you can take a quick position and hold for little and exit with profits.
2. Exit Level
- When you trade on bank nifty the exit level becomes more important than the entry level. The exit level is where you will book profit or lose money. That’s why the exit level is so important.
- Never try to exit from the highest level, try to exit from 10 – 20 points before the level touched its high. So to avoid any huge lose keep it in mind and also set a stop loss.
Read this article, which will help you if face any loss- How to recover the loss from the share market?
- You have the capital to invest in. The more you have capital you can take positions with more volumes.
- But for trading invest only the extra money or the money you can afford if it losses. Never invest all your money or never think that you will get a huge profit investing all your money at a time.
- Going for the long run invest the minimum required money and earn profit for a long.
- Try to keep your investment and buying volume within the limit, because the market is away from our limit while trade on bank nifty.
- In trading, knowledge is the key factor. Because intraday needs a lot of knowledge. And trade on bank nifty is risky for its volatile nature. You can take the position and exit before predicting the movement of bank nifty.
- Predict the movement and take your position with a stop loss and set a target level and exit with the profit or if the prediction goes wrong exit from the stop loss.
- Finally when you know that you can trade with your own knowledge then start trading.
5. Market Situation
- Always trade on the market situation. Considering on the market if the market is so volatile or if it goes on sideways then do not trade on bank nifty. Try to look at when the market is moving directionally, where if it goes up or down you can trade on both situations.
- If the market goes up then Take a position with CE and if it goes down then take a position with PE.
6. Global Economy
- Seeing the global economy you can predict how the domestic market will run. The global market and Asian markets will impact on the Indian market. So if the global moves positively then you can consider the Indian market might move accordingly.
How to Trade on Bank Nifty
To trade on bank nifty open a Demat account. Before that search for the best discount broker and then do all the procedures to open a Demat account. After opening the account active the F&O segment, that will need 24 hours to get activated. After the activation add your funds to the Demat account and then trade on bank nifty.
To know the best discount broker read this article.
After all the discussion I will say that trade on bank nifty is so risky script. So before investing be care full. Always try to use the stop loss for a huge loss. Investing in the share market depends on your mind set and your economic condition. So it’s up tp you when you can invest in and then decide to invest in.
Thank You for reading this article. Hope you like this and help full for you.
Wishing you a safe and profitable trade.
If you have any query then contact us at: [email protected]
1. When does the Indian market open and close?
The Indian market opens at 9:15 am and closes at 3:30 pm every day. The market remains closed on Saturdays nd Sundays and other bank holidays.
2. How can I get profit in Bank Nifty?
You can earn a profit when the levels go up. Suppose you buy CE at a level, then if the levels go up you will earn a profit. If you buy PE or the market levels go down then you will earn a profit.
3. Can I buy 1000 lots in bank Nifty?
The Bank Nifty’s one lot size is 25. So you can easily buy 1000 lots.
4. What is the cost of 1 lot of bank Nifty?
The 1 lot size of bank nifty is 25. Suppose you want to buy a level and the CMP is 100, then the total cost will be 25×100= 2500 RS. for one lot.