What is the Bank Nifty Index? How to analyze?
Updated: Oct 12, 2020
Bank Nifty represents the 12 maximum liquid and huge capitalized shares from the banking area which exchange at the National Stock Exchange NSE. It offers buyers a benchmark that captures the capital market's overall performance of the Indian banking quarter.
The 12 banks which can be included within the Bank Nifty Index are HDFC Bank, ICICI Bank, Kotak Bank, Axis Bank, State Bank of India, IndusInd Bank Ltd, Federal Bank Ltd, RBL Bank Ltd, Bank of Baroda & Yes Bank Ltd. If the banking region is good, ie. Banking inventory is trending up, bank nifty index also is going up. The Bank Nifty index movement relies upon two factors. 1.Fundamental Factors 2.Technical Factors Fundamental Factors: 1. Bond Yield Movement: From the Stock market factor of view, the contemporary yield is a feature of the bond’s rate investing and its coupon or interest payment, in an effort to be more correct than the coupon yield if the rate of the bond is exceptional than its face value. 2.Quarterly result replaces the top six banks - HDFC Bank, ICICI Bank, KOTAK Bank, SBI, Axis Bank, and IndusInd Bank. Technical Factors: Derivative Indicators: There are three predominant indicators you would use to evaluate derivatives like Futures and Options.
These are: Open Interest, Volumes, and Put-Call Ratio (PCR) For More Information click here: Bank Nifty Index