Best bank nifty trading strategy for beginners in Indian stock market

1. Best bank nifty trading strategy for beginners in Indian stock market

2. Before going to trading strategy we should first know basic of Bank nifty and its effect on Indian stock market. We will discuss how Bank nifty is used to find direction of Nifty and banking stocks. Can we trade directly in Bank index? How to know what will be the trend of Bank nifty to trade in Future or in Options? Is it safer than Nifty to trade? We will discuss step by step with examples. Nifty comprises of different index like Auto index, IT index, Bank index etc. Bank nifty comprises of top 12 most liquid and most capitalised banking stocks. So Bank nifty has more importance in Nifty which can influence trend of Nifty. All technical traders in Indian stock market use Bank Nifty Today technical trend which is posted daily before market open @8.45 am. It is very helpful for option and future trader and to learn technical analysis.

3. Bank nifty future and option contract has lot size of 20. It has weekly expiry and is very volatile than Nifty, so trader should learn technical analysis before trading in Bank nifty. Generally Bank nifty is influenced by financial news like RBI policy or major economic step taken by Govt. and change trend accordingly. In case of no major news Bank nifty always follow Nifty Trend which is posted daily before market open and followed by all derivative traders in India. Bank nifty Future trader can buy or short Bank nifty to trade. They can keep position till expiry. Without doing technical analysis it is too risky to trade in Bank nifty. First you should have to know what the trend is and then only you can decide to buy or short. After getting entry point you should have idea of exit point, support and resistance and finally range of today market to make profit. In case of Option trading analysis of trend and range of market is very important. But instead of doing it itself trader generally depends upon tips and spend money. Bank Nifty Today gives an idea of Bank nifty trend to trade safely in Option and future trading.

4. Bank nifty is very volatile and traders should know hedging to protect themselves from loss. Let’s take an example. Example 1 Suppose you have position in Bank nifty Call option and suddenly Nifty correct due to negative news. Here you may lose money heavily. Buy here use Hedging strategy by shorting 2 lots Bank nifty future to protect principal amount and make money. Example 2 Suppose you no technical idea about trend and you have Nifty future in buy side. Technically trend is negative. Here you can short 2 bank nifty futures to hedge and prevent loss. So it is always advisable to follow Nifty Trend posted daily to know technical trend of market and Bank nifty before market open to trade safely. It is also helpful to learn technical analysis. This also provides upcoming national and international economic events which help positional traders to make strategy accordingly. Like 3-4 days before RBI policy Bank nifty generally starts rally so knowing event date much before helps positional traders to keep position in Bank nifty future and Call Options.