Nifty is a very common term of share market. The word nifty is a
combination of two words 'N'ational and 'F'ifty. It consists of the 50 stocks
listed on the National Stock Exchange (NSE) representing 24 different sectors
of the economy. Nifty index is basically a simple tool for helping investors
understand which stock they should buy and which stock they should avoid. Lets
suppose the nifty index is going upwards then you can earn lots of money if u
invested it wisely.
Nifty consists of bank nifty and nifty futures. As far as 'nifty
futures' is concerned, it means buying or selling for the future. Nifty futures
are available in lots. One nifty future consist of 50 derivatives of nifty.
Lets suppose nifty is at 5000 and you think it will touch 5500 in 10-15 days.
Then you can buy some lots of futures at 5000. As a nifty trade goes upwards
you can start making profit and vice versa. This profit and loss is calculated
on daily closing price.
Now we talk about the second one which comes under nifty i.e bank
nifty. Bank Nifty option is also an Index option whose value is based on Bank
Nifty Index. Bank Nifty trading is allowed in bank nifty futures only. Its lot
size is 25.The index have 12 stocks from the banking sector which trade on the
National Stock Exchange. It is basically an index value for letting you know
the fluctuations in the banking sector. It gives you an insight of whole
banking market scenario. BANK NIFTY futures contracts have a maximum of 3-month
trading cycle and the value of the futures contracts on BANK NIFTY may not be
less than Rs. 2 lakhs at the time of introduction.
The companies that are listed in nifty index represent the leading
companies in the country. Therefore Nifty is a profitable investment for all those
who are looking forward to invest in index. And if you go with the present
scenario, there are many Indian & Foreign investors who are coming forward
to invest in the Nifty.
Invest Wisely.
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