6 June 2014

BANK NIFTY : HIGHLY VOLATILE INDEX FOR TRADING

Bank nifty future is one of the highly volatile index's of the 'National Stock Exchange' of India. The active professional trader are meant to make huge money, which is only possible in very active scripts and many scripts and their complex nature are very difficult to predict. The volatility of the individual scripts are low when we compare with the " index future" .This made us to choose Bank nifty. One cannot trade in a Choppy/Side way market. Bank Nifty is almost active in all the time. It is such a volatile index, even during a choppy market and that enhance the spirit of many trader to trade in ' Bank Nifty ' index future. There are few institutional traders who only trade in Bank Nifty and minting huge money. It is such volatile index future, where we have more opportunity to make great money.
Facts about market representation of Bank Nifty
The CNX Bank Index represent about 15.89%of the free float market capitalization of the stocks listed on NSE and 89.06% of the free float market capitalization of the stocks forming part of the Banking sector universe as on  June 28, 2013.
The total traded value for the last six months ending June 2013 of all the Index constituents is approximately 15.55% of the traded value of all stocks on the NSE and 84.49% of the traded value of the stocks forming part of the Banking sector universe
To be included in the bank index, a stock should be a banking stock with a free float
market capitalization & company turnover of top 500 stocks.  It should also have a trading frequency of at-least 90%.  Such Banking stock should also have positive net worth.
Bank Index is re-balanced with changes, if any twice a year.  The dates of re balancing are 31 January and 31 July . A six week prior notice is given to market if any changes are effected during such semi-annual bank nifty re-balancing reviews.
Selection Criteria
Selection of the index set is based on the following criteria:
1.Company's market capitalization rank in the universe should be less than 500
2.Company's turnover rank in the universe should be less than 500
3.Company's trading frequency should be at least 90% in the last six months.
4. Company should have a positive net worth.
5.A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
Constituents list of CNX Bank
1.Axis Bank Ltd.
2.Bank of Baroda
3.Bank of India
4.Canara Bank
5.HDFC Bank Ltd.
6.ICICI Bank Ltd.
7.IDBI Bank Ltd.
8.Kotak Mahindra Bank Ltd.
9.Oriental Bank of Commerce
10.Punjab National Bank
11.State Bank of India
12.Union Bank of India
The Bank nifty Future 1 Lot Size is 25. The Margin required for one lot is about Rs.25000.00 approx.The page title calculation made for 2-Lots Size. i.e.- 50 no’s X 50 Points =Rs.2500/- Every month you can make money up to Rs.60,000.00 with the minimum investment. 

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