Market indexes serve as economic barometers for investors. Some investors use market indexes as performance benchmarks. If you’re looking to invest in India’s stock market, the NSE NIFTY 50 index can be an important tool for assessing the country’s economic condition and benchmarking.
What is NSE NIFTY 50?
The NIFTY 50 is India’s stock market index similar to the Dow Jones Industrial Average in the U.S. The index tracks the 50 largest companies on India's National Stock Exchange (NSE). It represents dozens of sectors of the Indian economy.
The constituents of the NIFTY 50 are weighted by market capitalization. The NIFTY 50 index is one of the two main stock market benchmarks in India. The other Indian stock market benchmark is the BSE SENSEX. NSE Indices Limited owns and maintains the NIFTY 50 index.
What is NSE NIFTY 50 option chain?
The NSE NIFTY option chain is a list of all the option contracts, their strike prices, and premiums for a particular maturity period. Therefore, the NIFTY options chains provides investors a quick check of all the calls and puts based on the benchmark index.
In the NIFTY options chain, all in-the-money options appear in yellow shading. Therefore, traders can easily see in-the-money and out-of-the-money options. You can view NIFTY 50 option chain screen through the NSE website.
Traders can use the option chain data of the NIFTY to quickly evaluate the depth and liquidity of specific options to properly position their trades. Studying NIFTY option chain is part of many active traders’ technical analysis.
NSE NIFTY 50 companies list
The NSE NIFTY 50 companies represent India’s economic backbone sectors such as financial services, consumer goods, pharmaceuticals, and fertilizers and pesticides. NIFTY 50 companies also represent sectors such as construction, media and entertainment, oil and gas, information technology, automobiles, and telecommunications.
As NIFTY component companies are weighted by market capitalization, which keeps changing, NIFTY 50 companies list also keeps changing. The NIFTY 50 companies list updates regularly, during which companies may be added or removed from the index depending on the change in their market capitalization, stock liquidity, and other factors that NIFTY overseers look into.
The NSE NIFTY 50 companies list is reviewed twice in a year. NIFTY companies list updates don’t always result in the change of constituent companies. The NSE NIFTY 50 managers decide when to review and reshuffle the index.
NSE NIFTY 50 top gainers
The NSE NIFTY 50 top gainers shows the list of companies whose stock prices increased the most in percentage terms from the previous closing prices. The NIFTY 50 top gainers list keeps changing. The index publishes top gainers list every day at the end of trading. You can also sort NIFTY 50 top gainers by specific periods, such as the last one week, month, or even year.
Most volatile stocks NSE NIFTY 50
Volatility in the stock market describes the degree of change in a stock’s price over a specific period. Stocks that show big price fluctuation are thought to be more volatile while those with small fluctuation are thought to be more stable. Active traders often seek out volatile stocks.
When my friends ask for stock tips, I used to tell them "Index in NIFTY 50 or NIFTY Next 50". But lately, I've been telling them:— Dinesh Sairam (@Dinesh_Sairam) September 18, 2020
1. Get the list of NIFTY 50 or NIFTY Next 50 stocks
2. Remove PSUs and Cyclicals
3. Remove bad Corporate Governance and High Risk
SIP the rest.
You can view the most volatile stocks on NSE NIFTY 50 index sorted by price and volume. The list of the most active stocks on NSE NIFTY 50 will change from time to time. Traders can sort the most volatile NIFTY stocks by trading periods such as one day, week, month, and so on.