7 Experts Strategy to Trade in Bank Nifty

Bank Nifty

Bank Nifty is an index which includes the top 12 banking companies listed on NSE.

Why Bank Nifty?

Individuals purchase the Bank Nifty options to indirectly invest in banking companies or as a hedge to earn returns from the banking sector.

Lot Size of Bank Nifty Contracts

The no. of shares you buy in 1 transaction is the lot size. For Bank Nifty contracts, it is 25. You can trade in its multiples, i.e., 25, 50, 75, etc.

5-minute Candlestick Chart

This strategy is for intraday traders. To implement it, pick a point where the first two candles are either bullish or bearish.

Sell Trades & Buy Trades

During Gap Down pricing, wait for the gap to be filled & then place a sell order and vice-versa for a buy trade.

Long Straddle

Buy a Call & Put option at same strike price. Upper Breakeven = Call option’s strike price + premium amount. Lower Breakeven = Put option’s strike price + premium paid.

Short Straddle

The short straddle involves selling a call and put option with the same strike price & expiration, profiting from low price movement & volatility.

Naked Calls or Puts

During a price rise, buy a naked call option, and when index starts declining, use a naked put option for gains. Ensure placing a stop-loss order in case of price reversal.

Bull Call Spread

During moderately bullish markets, buy an ATM call and sell an OTM call with the same expiry. This creates a range that limits losses & maximises profits.

Bear Call Spread

Useful during mildly bearish sentiments. Sell an ITM call option & purchase an OTM call option in order to hedge against unexpected price rises.

Long Call Butterfly

It combines long & short call options at different strikes to get profit from limited priced movements & reduced volatility.

Point to Remember

Start small, be patient, and gradually build your skills to unleash the full potential of intraday trading.