Given turmoil in the banking sector, traders will be looking to profit from price swings, as well as trying to hedge high volatility. Every listed bank has highly liquid stocks, and most are available in F&O (futures and options) segment. Typically, a hedger will be looking to use an index like the Nifty or the Bank Nifty to offset volatile bank stock exposures.
The Nifty Bank is the most liquid index after the Nifty. Indeed, it is more liquid in one way, given weekly options for the “Bank”. The Nifty Bank correlation with the Nifty is over 0.98 and
The Nifty Bank is the most liquid index after the Nifty. Indeed, it is more liquid in one way, given weekly options for the “Bank”. The Nifty Bank correlation with the Nifty is over 0.98 and
