NIFTY 50 & BANKNIFTY Trading Guide. Strategy | Options | FII-DII Data | Risk Management.
Introduction to NIFTY 50 & BANKNIFTY. • NIFTY 50: Benchmark index of top 50 Indian companies. • BANKNIFTY: Represents major banking sector stocks. • High liquidity and volatility – ideal for traders..
How to Trade NIFTY & BANKNIFTY. • Use technical analysis: moving averages, RSI, MACD. • Understand key support/resistance zones. • Follow global market cues and SGX Nifty. • Trade during high volume periods for accuracy..
Option Chain Analysis. • Option Chain shows strike-wise OI and volume. • High OI = Strong resistance/support. • Use PCR (Put/Call Ratio) for sentiment analysis. • Watch for change in OI for intraday direction..
FII & DII Data Analysis. • FIIs: Foreign Institutional Investors – affect market trends. • DIIs: Domestic Institutional Investors – often counter FIIs. • Track daily buy/sell data on NSE website. • Heavy FII buying = bullish signal (mostly)..
Risk Management: Avoiding Losses. • Never trade without Stop Loss. • Limit position size (2-5% of capital per trade). • Avoid overtrading; stick to plan. • Review trades weekly to learn and improve..
Intraday vs Positional Trading. • Intraday: Fast moves, needs timing and discipline. • Positional: Hold for 2-10 days based on breakout levels. • Use different indicators for each style. • News, global cues impact both styles..
Best Tools & Platforms. • NSE India website for option chain and FII/DII data. • TradingView or Chartink for technical analysis. • Sensibull, Opstra for options strategies. • Keep an economic calendar (e.g., earnings, RBI dates)..
Conclusion: Golden Rules. • Plan every trade: Entry, SL, Target. • Risk only what you can afford to lose. • Combine data (options, FII/DII) with chart trends. • Patience and discipline win in the long run..