Bank Nifty F&O Expiry Day: Bank Nifty Futures and Options (F&O) expiry day has been shifted from Thursday to Friday. The changes will be effective from the trade date of Friday, July 7, 2023; accordingly, all existing contracts with Thursday expiry will be revised to Friday by the end of the day on July 6, 2023. The first Friday expiry will be on July 14, 2023, according to NSE.
Bank Nifty Today | Nifty Bank, Nifty 50, Share Prices, Stock Market Highlights
Benchmark indices, NSE Nifty 50 and BSE Sensex ended flat on Tuesday. “The domestic market experienced profit booking due to selling pressure in the IT sector. IT stocks witnessed a decline in anticipation of further downward revision in spending. However, a rally in auto and banks helped to recover the losses. Going ahead an important influencer will be the commentary on growth and inflation forecasts by the RBI following its MPC meeting given the general consensus that rate pause will continue,” said Vinod Nair, Head of Research at Geojit Financial Services.
Bank Nifty rose 62.90 points or 0.14% to 44,164.55. The top gainers on the index were Kotak Bank, Axis Bank, AU Bank, Bandhan Bank and IndusInd Bank while the losers were Federal Bank, ICICI Bank, PNB, Bank of Baroda and SBIN.
"I support the new process of expanding trading hours and moving the expiry of F&O contracts to Friday. It will provide customers with more time to trade, assess market conditions, and manage risks effectively before the expiry. On one hand, the market volatility will be in check, and on the other, one will see a stark reduction in weekend risks, both of which bring significant advantages for the traders. Moreover, the increased trading day presents a valuable opportunity for funds and option writers to collect higher premiums and boost derivative volumes. I believe these changes will greatly benefit market participants and contribute to the overall growth and stability of the market," said Sarvjeet Virk, Co-founder, Shoonya by Finvasia.
“NSE’s modification shifts the expiry day from Thursday to Friday, providing traders with an additional day to trade and manage their positions for both weekly and monthly expiries. The adjustment is expected to enhance liquidity and volatility in the markets, while concurrently aligning the monthly expiry of the S&P 500 with the last working day of the month, which is Friday. It is essential to note that the change in expiry day will not affect BSE F&O contracts, as the Bombay Stock Exchange (BSE) has not revealed any plans to modify the expiry day for its F&O contracts,” said Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.
“NSE’s decision to shift Bank Nifty’s weekly expiry to Friday instead of coinciding it with the weekly expiry of Nifty on Thursday should help bring in better trader focus on each index and result in boosting overall volumes in the two most popular indices in the derivative segment. Additionally, it would also be in sync with the expiry on Friday done by BSE,” said Jay Thakkar, Head Alternate Research, Sharekhan by BNP Paribas.
Axis Bank share price jumped 1.62% to Rs 966.25 today. The stock touched an intraday high of Rs 967.20 and a low of Rs 951.10. At the current price, the bank’s market capitalisation stands at Rs 2.97 lakh crore. Axis Bank stock touched a 52-week high of Rs 970 on Jan 4, 2023, and a 52-week low of Rs 618.25 on Jun 23, 2022.
“While liquidity and transaction charges are the two key factors determining the success of expiry products, NSE currently holds an advantage in terms of liquidity, whereas BSE offers lower transaction charges. It is worth noting that BSE's Sensex and Bankex options have also gained considerable traction, indicating that the availability of multiple expiry options will not be the sole determinant of success. Instead, liquidity and transaction charges will play crucial roles in attracting market participants and ensuring the viability of these products,” said Parth Nyati, Founder, Tradingo.
“In recent times, there has been a notable shift in trading volume towards the options segment, particularly index options, due to the implementation of peak margin norms. Recognizing this trend, the Bombay Stock Exchange (BSE) has been actively focusing on index options and has introduced a Friday expiry for Sensex and Bankex option contracts. To respond to this market development, the National Stock Exchange (NSE) has also decided to move its Bank Nifty expiry to Fridays. Moreover, the success of Finnifty's Tuesday expiry has served as a source of inspiration for the NSE to experiment with multiple expiries. As a result, the NSE now offers four expiries per week, including Nifty Midcap options on Wednesdays,” said Parth Nyati, Founder, Tradingo.
Bank Nifty rose 6.90 points or 0.02% to 44,108.55. The top gainers were Axis Bank, Kotak Bank, IndusInd Bank, IDFC First Bank and Bandhan Bank while the losers were Federal Bank, ICICI Bank, SBIN, HDFC Bank and PNB.
“Traders will utilize their capital in a more efficient manner if Nifty and Bank Nifty expire on different days; brokers will earn more brokerages, exchange and government will earn more transaction charges and STT,” said Mitesh Karwa, Research Analyst at Bonanza Portfolio Ltd.
“As NSE looks to gain a competitive advantage over BSE, the Nifty Bank expiry has been shifted to Friday. This will not impact Nifty Bank traders in any way but if both BSE & NSE had the same day as the expiry day would have surely made it easier for investors to remember and accordingly adjust their trading positions,” said A R Ramachandran from Tips2trades.
“Though Bank Nifty is a thematic index while Nifty is a broad-based index, and though both differ in terms of volatility and price ranges, they are often traded in tandem, with each taking cues from the other, especially during expiry day fluctuations. However, once expiry days become different, it is possible that such a link might diminish. This move is more significant than any of the other similar changes wrt expiry days brought in for Finnifty or that of BSE indices etc, as Nifty and Bank Nifty constitute the lion’s share of derivative volumes,” said Anand James, Chief Market Strategist at Geojit Financial Services. He further said that one could argue that too much may not be good, as now one would have to spare the heightened allocation of resources in terms of attention, research, time etc. to yet another day.
“The NSE’s decision to shift the expiry of Bank Nifty to Friday can be viewed from two perspectives. Firstly, BSE F&O contracts, which expire on Friday, have gained popularity among traders due to lower charges than NSE. To counter this competition, NSE introduced the idea of shifting the expiry day. Secondly, NSE’s previous successful experiment with the Finnifty’s new expiry day may have influenced this decision,” said Santosh Meena, Head of Research, Swastika Investmart Ltd. He further said that expiry alone may not be the sole factor determining attractiveness; transaction charges will also play a significant role, especially considering the appeal of BSE Sensex F&O contracts.
NSE’s move of shifting Bank Nifty’s Futures and Options (F&O) expiry from Thursday to Friday has surprised traders. The changes will be effective from the trade date of Friday, July 7, 2023; accordingly, all existing contracts with Thursday expiry will be revised to Friday by the end of the day on July 6, 2023. The first Friday expiry will be on July 14, 2023, according to NSE. With this change, NSE will now have an F&O expiry on every day of the week except Monday, with effect from the week starting July 9. There is the Nifty Financial expiry on Tuesday, Nifty Midcap Select on Wednesday, Nifty 50 on Thursday and now Bank Nifty on Friday.
Bank Nifty stayed below 44100, trading at 44087. The top losers on the index were Federal Bank, ICICI Bank and HDFC Bank while the gainers were Axis Bank, Kotak Bank and IndusInd Bank.
Benchmark indices were trading in red on Tuesday. The NSE Nifty 50 fell 58.25 points or 0.31% to 18,535.60 and BSE Sensex tanked 212.70 points or 0.34% to 62,574.77. The top gainers on Nifty 50 were UltraTech Cement, Axis Bank, Maruti Suzuki, Grasim and Tata Motors while the losers were Tech Mahindra, Infosys, HCL Tech, TCS and Wipro.
Bank Nifty dipped 8.40 points or 0.02% to 44,093.25. The top gainers on the index were Axis Bank, Kotak Bank, IndusInd Bank and IDFC First Bank while the losers were ICICI Bank, Federal Bank, PNB, HDFC Bank and SBIN.
“If Bank Nifty sustains above the range of 44050 on a weekly basis, it will start moving towards 45000 in the coming weeks. The resistance is at around 44000-44100 and the support is at around 43900-43950 till the time index breaks this range it is expected to remain sideways. Technical indicator RSI is at around 60 and is showing strength by sustaining above 50 levels,” said Mitesh Karwa, Research Analyst at Bonanza Portfolio Ltd.
“Bank Nifty monthly option chain data reflects on 44000 straddles continue to play tug of war, with CE writers holding overall more than lakh OI contracts at various strikes all the way till 47000CE. PCR_OI at 44000 is nearly 1.25 and the sustenance above 44200 here will see 45000 zones on an immediate basis,” said Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher Pvt Ltd.
“Bank Nifty is expected to continue to trade within the range of 43700-44300. This suggests that the index is likely to move sideways, lacking a clear trend,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Bank Nifty has developed a cooling-off setup on the weekly chart which indicates a pause in momentum for the time being. Bank Nifty intraday strategy: Buy on dip with a stop loss placed at 43700. First support at 44185 and then 44090 while resistance at 44393 and 44506, according to Rahul Sharma, JM Financial.
Bank Nifty Futures and Options (F&O) expiry day has been changed from Thursday to Friday, said NSE. The changes will be effective from the trade date of Friday, July 7, 2023; accordingly, all existing contracts with Thursday expiry will be revised to Friday by the end of day on July 6, 2023. The first Friday expiry will be on July 14, 2023. If Friday is a trading holiday then the expiry date will be the previous trading day, NSE added. Last Month, BSE also changed the expiration day of Sensex and Bankex monthly, weekly and long-dated futures and options contracts to Fridays from Thursdays.