BANKNIFTY
NIFTY BANK
DATE - AUG 13, 2021.
The NIFTY Bank Index comprises of the most liquid and large Indian Banking stocks. It provides investors and market intermediaries
a benchmark that captures the capital market performance of the Indian banks. The Index comprises of maximum 12 companies listed
on National Stock Exchange of India (NSE).
TECHNICAL ANALYSIS.
1. INDEX is on upper range of consolidation.
2. Charts making pattern similar to PENNANT.
3. SUPERTREND give a buy signal.
4. ALLIGATOR give a buy signal.
5. INDEX trading ABOVE MA 21/50/100/200/250/300.
6. HIGH OI in CALL & PUT at strike 36000.
7. 36300 is a BREAKOUT level of BANKNIFTY.
FUNDAMENTAL ANALYSIS.
1.P/E - 22.57
2.P/B - 2.85
3.Dividend Yield - 0.33
Top constituents by weightage -
1. HDFC Bank Ltd. - 27.56
2. ICICI Bank Ltd. - 22.91
3. State Bank of India - 12.42
4. Kotak Mahindra Bank Ltd. - 11.77
5. Axis Bank Ltd. - 11.49
6. IndusInd Bank Ltd. - 5.20
7. AU Small Finance Bank Ltd. - 2.35
8. Bandhan Bank Ltd. - 1.73
9. Federal Bank Ltd. - 1.53
10. IDFC First Bank Ltd. - 1.2
Portfolio Characteristics -
1. Methodology - Periodic Capped Free Float.
2. No. of Constituents - 12.
3. Launch Date - September 15, 2003
4. Base Date - January 01, 2000
5. Base Value - 1000.
6. Calculation Frequency - Online Daily.
7. Index Rebalancing - Semi-Annually.
Eligibility Criteria for Selection of Constituent Stocks:
i. Companies should form part of NIFTY 500 at the time of review. In case, the number of eligible stocks representing a particular
sector within NIFTY 500 falls below 10, then deficit number of stocks shall be selected from the universe of stocks ranked within top
800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used
for index rebalancing of NIFTY 500.
ii. Companies should form a part of the Banking sector.
iii. The company's trading frequency should be at least 90% in the last six months.
iv. The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in
the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
v. Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index.
vi. Final selection of 12 companies shall be done based on the free-float market capitalization of the companies.
vii. Weightage of each stock in the index is calculated based on its free-float market capitalization such that no single stock shall be
more than 33% and weightage of top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing.
Index Re-Balancing:
Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of
indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of
change.
Index Governance:
A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE
Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee.
DISCLAIMER - All analysis are for educational purpose. it is not a trading or investment advise.
SOURCE - NSE website
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