NSE Might Choose Nifty Bank Weekly Expiry over Nifty Weekly Expiry

NSE decision related to choosing Nifty bank weekly expiry is still awaited. The trading community active on Twitter suggests that Nifty bank weekly expiry came first in 2016, which gained huge attraction and increased the NSE derivatives turnover. So, Nifty bank weekly derivative contracts should continue.

Nifty weekly expiry was introduced in 2018, after the big success of Nifty bank weekly expiry. Slowly Nifty weekly contracts also attracted many traders and investors searching for volatility derivative contracts. Nifty and Nifty Bank derivative contracts were introduced for hedging purposes, but due to their lucrative option premium, in trading volume in the Nifty and Nifty Bank shot up over the period of time.

Earlier, before January 2021, NSE had only two derivative tradable contracts which is Nifty and Nifty bank. Later, in January 2021, NSE introduced Finnifty weekly expiry contracts, which gave a push to speculative activities. Later, NSE also introduced Nifty Mid-cap and Nifty Next 50 expiry which further increased the volatility on the indices.

Is Nifty Bank Weekly Expiry Better Than Nifty Weekly Expiry

Yes, Nifty bank weekly expiry is better than Nifty weekly expiry due to its volatility and volume. NSE might consider Nifty bank to keep their expiry business revenue which is a big part of their profits as an exchange. The Nifty bank index contains only 12 stocks so volatility will be high and intraday, swing, positional traders can continue trade while deploying different kinds of strategies.

BSE Selected Sensex 30 Weekly Expiry

On Thursday, October 3, 2024 BSE released the notice mentioning that the exchange will discontinue the Sensex 50 and Bankex weekly expiry with the effect from Nov 20, 2024. However, BSE benchmark index Sensex 30 weekly expiry will continue and lot size is expected to rise.

The notional turnover for BSE's index options in August stood at Rs 2,603 lakh crore. As per exchange data, Sensex contributed to 85% of the volumes in the financial year ended March 2024. So keeping Sensex 30 seems to be a wise decision taken by BSE.