Revision of Weekly Expiry Day of Bank Nifty Options4 min read
We have an exciting update for all the Bank Nifty enthusiasts out there! Get ready for a significant change in the trading landscape as the Bank Nifty Weekly Expiry Day shifts from Thursday to Wednesday. This alteration promises to bring a fresh dynamic to the market, providing traders with additional opportunities and a more convenient trading experience.
In this blog, we will delve into the details of this shift and explore how to benefit from this change. So, fasten your seatbelts as we embark on this exciting journey into the new Bank Nifty expiry day on Wednesdays!
On July 12, 2023, the NSE shared a circular stating a change in the Weekly expiry day of BANK NIFTY from Thursday to Wednesday. The key takeaways for traders from the circular include:
- Bank Nifty Weekly Index Options Expiry Day has been moved from Thursday to Wednesday
- The above change shall be effective from trade date September 4, 2023, Monday, and accordingly, all existing contracts with Thursday expiry will be revised to Wednesday on September 1, 2023 EOD.
- The first Wednesday expiry will be on September 06, 2023
- If Wednesday is a trading holiday, then the expiry day will be the previous trading day
- Despite these changes, the overall trading cycle for BANKNIFTY remains consistent, and traders can look forward to 4 weekly expiration contracts (excluding monthly contracts), 3 monthly expiration contracts, and 3 quarterly expiries in the March, June, September, and December cycle.
- There is no change in the expiry day of the monthly and quarterly contracts for Bank Nifty and the Expiry day will continue to be the Last Thursday of the Expiry month
What is BANK NIFTY?
Launched in the year 2003, Bank Nifty is a sectoral index comprising 12 stocks from the banking industry that trade on NSE. These stocks are the ones that are most liquid and highly capitalized. Although launched in the year 2003, Bank Nifty uses 2000 as the base year. The top constituents of Bank Nifty are HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and State Bank of India. Investors and market intermediaries get a benchmark through Bank Nifty that captures the capital market performance of the Indian banking sector.
How do I start trading in Bank Nifty on Paytm Money?
You can start trading in Bank Nifty in three easy steps:
Step 1: Go to the F&O Dashboard on the Paytm Money App
Step 2: On the top of the dashboard, you will find the “Market Indices section”. In the Market Indices section, you will be able to see “Bank Nifty” on the second card.
Step 3: Select Option Chain for options trading or Futures Contract for futures trading to begin trading in Bank Nifty
Alternatively, the Paytm Money App allows you to trade in Bank Nifty directly by typing “Bank Nifty” and selecting the Futures or Options tab within the watchlist.
For trading in Futures, select “ Futures” tab underneath the Search bar-
For trading in options, select “Options” tab underneath the Search bar-
Why do traders love the Bank Nifty?
- High Liquidity– Bank Nifty is one of the highest transacted indices in the NSE for options. Hence, it has very high liquidity
- Volatility– Historically, Bank nifty has displayed higher levels of volatility than NIFTY, therefore providing more trading opportunities
- Limited constituent stocks– Since Bank Nifty has only 12 constituent stocks, tracking individual constituents is relatively easier
- Significant weightage in Nifty 50
Here’s a quick glance again at the key changes in the expiry day of derivatives contracts on BANKNIFTY:
For Further details regarding the changes in the Weekly Expiry Day for BankNifty, please refer to the below annexure:
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit: https://www.paytmmoney.com.
Written by: Satyam Agarwal, Product @ PaytmMoney