What Does the Nifty Live Chart Represent

Nifty Chart is a representation used for the index representing the changes in the Nifty 50 listed on the National Stock Exchange (NSE). The market data is often graphically represented in the Nifty Charts in two ways OHLC chart or the Candlestick chart type. The Candlestick pattern is very popular amongst the day traders in the stock exchange. Both the charts show the same market data, this data consists of high, low, opening, and closing prices for a specified time. 

The Bank Nifty Chart is a free-float market cap that is a weighted index with a focus on banking stocks. It is an index that represents the most liquid and large capitalized Indian banking shares, the investor gets the benchmark that captures the capital performances of the banking sector. Bank Nifty happens to be one of the most actively traded index futures and options in the F&O market. The importance has increased due to the high weightage in the Nifty and its correlation with the Nifty. 

What does Bank Nifty represent? 

Bank Nifty is a Sectoral index with a focus on banking stocks and includes the private and PSU banks. It is one of the actively traded indexes in the futures and options market and has F&O trading on the NSE. Bank Nifty is calculated using the free-float market capitalization. Launched on September 15, 2003, uses January 01, 2000, as the base year with a base value of 1000. At the current bank, Nifty Value is almost 30 times over the last 19 years. The index is rebalanced semi-annually and the Bank Nifty values are available on a real time basis during the trading hours. This was the first option available for weekly trading of options and has high trading volumes than the Nifty. 

Stock-mix of Bank Nifty Index

As a Sectoral index, the Bank Nifty represents the banking sector which includes the Private Banks and also the PSU banks. The Bank Nifty almost represents 12 highly liquid and large capitalized stocks from their banking sector which can be traded on the National Stock Exchange. Bank Nifty 50 Chart Index provides the investors and market intermediaries with a benchmark that captures the capital market performance of the Indian banking sector. 

The Private banks in comparison to the PSUs have a large weightage in the Bank Nifty which is not so surprising as the performance of the PSU banks is not considered in the last few years due to the Non performing assets. 

By Adam

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