How To Find The Trend And Trade In Nifty And Bank Nifty

By Author: Arthur Jackson
Total Articles: 18
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Let us first know about Nifty and Bank nifty before jumping to trend of Nifty. Nifty50 is the blue chip index of National Stock Exchange .It comprises of top 50 companies from various sectors like Banking, Auto, IT, Infra etc. Each company in Nifty 50 is given different weightage according to their market capitalization. Nifty also comprises of different index like Bank nifty index, IT index, Auto Index etc. Nifty is considered as economic indicator of India.

Bank index is more preferably known as Bank Nifty. It is the second most economic indicator after Nifty. It is diversified across 12 banking stocks including private and public bank listed on NSE and these banking stocks represents 93.3% of banking space.

To trade in Nifty Future, first you have to find Nifty Trend for Today. Then follow it.

1. Know recent updates on economic news from India and world and economic step taken by Indian Govt. and analyze the effect of the news on Nifty in positive or negative direction.
2. Calculate Call Put ratio, if it is greater than 1 then traders are in bullish mood and in case of less than 1 traders are ...
... in bearish mood.
3.To get Nifty Trend Today use Technical analysis chart to find support, resistance, Pivot,entry and exit point.

How to trade Nifty Future?

Nifty future is a derivative contract traded on NSE and is the most traded and liquid index future. Nifty Future derives its value from nifty index thus depends upon movement of top 50 listed stocks. Nifty future has a lot size of 75 units per contract with an initial margin of Rs.40, 000 is required to initiate long or short position.

You can trade Nifty Future in intraday and keep it for positional trade. Beginners should start trading with one lot to understand mechanism and then with increase in experience and knowledge lot size can be increased. Always use stop loss and trailing stop loss to avoid heavy loss. Use risk reward ratio while taking long or short position in Nifty future. As the market is volatile always try to control your emotion in intraday trading.Nifty future has an expiry date which is last Thursday of the month.

How to trade Bank Nifty Future?

To trade in Bank Nifty Future, first you have to find Bank Nifty Trend for Today.Then follow it.
1. Know recent updates on banks and RBI decision and economic step taken by Indian Govt. and analyze the effect of the news on banks in positive or negative direction.
2. Calculate bank nifty Call Put ratio, if it is greater than 1 then traders are in bullish mood and in case of less than 1,trader are in bearish mood.
3. To getBank Nifty Trend Today use Technical analysis chart to find support, resistance, Pivot, entry and exit point.

Bank Nifty future is a derivative contract traded on NSE and is the second most traded index after Nifty future. Bank Nifty Future derives its value from Bank nifty index thus depends upon movement of top listed banking stocks. Bank Nifty future has a lot size of 30 units per contract with an initial margin of Rs.37, 000 is required to initiate long or short position.
You can trade Bank Nifty Future in intraday and keep it for positional trade. Beginners should start trading with one lot to understand mechanism and then with increase in experience and knowledge lot size can be increased. Always use stop loss and trailing stop loss to avoid heavy loss. Use risk reward ratio while taking long or short position in Bank Nifty future. As the market is volatile always try to control your emotion in intraday trading.Nifty future has an expiry date which is last Thursday of the month.

Mr. Arthur Jackson, Technical Analyst and Founder of Nifty Trend providing trading advisory services in Nifty Future Trading Tips, Nifty Trend for Today, Nifty Trend for Today, Equity, Derivatives and Commodity market. He also made a guest appearance in various workshops which were conducted on stock market awareness.