The sellers have priced in a 35-50 bps hike in the repo rate and a hike in inflation forecast for FY23 from 5.7%.
MUMBAI: Ahead of the RBI committee’s decision on interest rates, option sellers have baked in a 3.5% range for the Bank Nifty index post the policy announcement on June 7. The Bank Nifty is down 16% from its record high of 41829.6 on October 25 last year through Tuesday’s closing of 34996. If MPC’s actions meet market expectations there could be a spurt of short covering which drives up the Bank Nifty. The put-call ratio of weekly Bank Nifty options expiring on June 8 stands at 0.58 which indicates that huge shorts have been created. “We expect the RBI to continue focusing on taking inflation and signaling its intent to continue raising the rate and normalising liquidity, while not entirely losing its on growth given the uneven nature of growth recovery.” Here, we provide the number of total lots ( (Nifty it. It means total number of lots that have been written for all the strike prices of an index or a stock up to date. “Along with the repo rate hike, the RBI will also revise its inflation estimates higher, possibly indicating inflation remaining close to 7% for the most part of CY2022,” said Suvox`deep Rakshit, senior economist at Kotak Institutional Equities. BANKNIFTY total Open Interest (OI) provides the total number of outstanding contracts that have not been settled for a future and Options or a Stock for the upcoming expiry date. Please do take trade based on your own analysis and risk. Information shared for educational purpose. Please note that I am not a SEBI registered member. However, higher rates can also dissuade customers from spending, causing loan demand to slow. Dear traders, I have identified chart levels based on my analysis, major support and resistance levels. “Option sellers normally make money at the expense of buyers, but with inflation being the buzzword, what the MPC does is anybody’s guess.”Ī rise in interest rates normally helps banks who raise deposit rates with a lag compared to lending rates thus improving their margins. “If the sellers have baked in a 3.5% move, it’s based on expectations of no unexpected surprises,” said Hormuz Maloo, director, AFco Investments. Any redemption as specified above shall be made without any payments of Exit Load.However, a CRR hike or change in stance to neutral from accommodative could raise the volatility and subject the option sellers to huge losses. by the Mutual Fund shall be processed and the Redemption proceeds would be paid in cash and would be as per the NAV of the Scheme declared by the Mutual Fund at the end of the day on which the Redemption request is received. In such a scenario valid applications received up to 3 p.m.
Traded price (closing price) of the ETF units is at discount of more than 1% to the day end NAV for 7 continuous trading days, or.Unit holders, other than Authorised Participants and Large Investors, can redeem units in less than Creation Unit Size of the Scheme directly with the Mutual Fund in the following cases:
Applications without relevant details of investor’s depository account are liable to be rejected.Įxchange Listing: Fund will be listed on National Stock Exchange of India Ltd. Units of the Schemes will be issued/repurchase and settled compulsorily in dematerialized form. The applicant under the Scheme will be required to have a beneficiary account with a Depository Participant of NSDL/CDSL and will be required to indicate in the application, the DP’s name, DP ID Number and beneficiary account number of the applicant with the DP. On the Exchange – The units of the scheme can be purchase/ redeem in minimum lot of 1 unit and in multiples thereof.ĭematerialization: The units of the Scheme will be available in the Dematerialized (electronic) mode only. Minimum application amount directly with fund: Authorised Participants and Large Investors can directly purchase/ redeem in blocks from the fund in 'Creation Unit' size on any business day. SBI-ETF Nifty Bank emulates the Nifty Bank Index that essentially reflects the capital market performance of Indian Banks, allowing you to tap into this potential.
Bank nifty drivers#
Introduction of major policy reforms, huge untapped potential in India and the diversity of the sector are drivers of growth and present a compelling investment opportunity. The banking sector mirrors the economy and is pivotal to economic growth.
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