NIFTY Midcap Select F&O Expiry Cycle2 min read
Before we dive into the latest NSE circular on the Nifty Midcap Select F&O Expiry Cycle, let’s take a step back and understand the index itself. The Nifty Midcap Select index is a benchmark that measures the performance of mid-cap companies listed on India’s National Stock Exchange (NSE).
It consists of 50 mid-cap stocks selected based on various financial metrics, such as liquidity and market capitalization. The index serves as a useful tool for fund managers and investors to assess the performance of their mid-cap stock portfolios.
On March 24, 2023, the NSE issued a circular (Circular Ref. No: 55/2023) outlining the revisions that will be implemented for trading in Nifty Midcap Select (MIDCPNIFTY) contracts:
Here’s what you need to know:
- Trading in MIDCPNIFTY weekly index futures shall be discontinued.
- Accordingly, no new MIDCPNIFTY Weekly Index futures contract shall be introduced from April 25, 2023 (end of the day).
- However, Weekly Futures contracts created till April 25, 2023 will be available for trading until their respective expiry/maturity dates.
- Trading in the Weekly Index option of MIDCPNIFTY contracts will be continued.
- The below are the changes in the expiry day of derivatives contract on MIDCPNIFTY:
Don’t miss out on the fine print – NSE’s important instructions
- All current futures and options contracts’ expiration and maturity dates will be revised/postponed to wednesday at the end of the day on April 25, 2023. For instance, the current contract’s expiration or maturity date, which was originally set for May 2, 2023 (Tuesday), will now fall on May 3, 2023 (Wednesday).
- Any new contract created for trading on / after EOD of April 25, 2023 shall be created as per the revised expiry days as mentioned in the aforesaid table.
- There is no other change in the existing contract specifications of MIDCPNIFTY.
Wait, there’s more to this!
- In comparison to Nifty Future margin, the margin needed for one lot of MIDCPNIFTY trading will be approx Rs. 70,000, or about 30% less.
- The lot size of MIDCPNIFTY is 75 qty.
- Contract value of MIDCPNIFTY is approx Rs. 5,10,000 (~6800 x 75 qty)
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Here’s another update for you on the Bank Nifty’s reduced lot size. To know more, please read this blog- Less is more – Bank Nifty lot size reduced