Nifty Bank Analysis | Track Momentum and ATR Levels Live

What is Nifty Bank? 

Nifty Bank or Bank Nifty is the representation of 12 Large Cap stocks from the banking sector that trade on the National Stock Exchange. The Nifty Bank index was started in the year 2000 by India Index Service and Product Limited (IISL), which is a subsidiary of NSE.

Bank Nifty provides investors and traders a benchmark that offers a reflection of the Indian Banking Industry. It is calculated using the free float market capitalization method. The base date for Bank Nifty is 1st Jan 2000. The base value is 1000.

Bank Nifty represents around 13.34% of the free float market capitalization of NSE stocks. Also, it represents 86.13% of the free float market capitalization of the Banking sector stocks. (As of December 30, 2011)

Futures contracts of Bank Nifty derivatives were started in June 2005.

Bank Nifty’s criteria for stock selection: 

Company's market capitalisation rank in the universe should be less than 500.

Company's turnover rank in the universe should be less than 500.

Company's trading frequency should be at least 90% in the last six months.

Company should have a positive networth.

A company that 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.