Options trading in NIFTY Midcap index?

The Nifty Midcap Index is designed to capture the movement of the midcap segment of the market.

"On 26th April, 2023 , the expiry for NIFTY Midcap Select Index was changed from Tuesday to Monday and within 7 months of the change in expiry day, the index showed healthy growth.

The top 10 constituents for NIFTY Midcap Select Index by weightage are as follows:

Fig. Nifty Mid Select weightage 

Fig. Financial Services, Capital Goods and healthcare sector has more weightage

Max Healthcare Institute Ltd. - 2.46 %, Power Finance Corporation Ltd. 2.08 %, REC Ltd. 2.06 %, Indian Hotels Co. Ltd. 1.96 %, Federal Bank Ltd. 1.92 %, Tube Investments of India Ltd. 1.91 %, AU Small Finance Bank Ltd. 1.87%,  Persistent Systems Ltd. 1.81 %, Coforge Ltd. 1.75 %,  Adani Power Ltd. 1.62 %.

Why Nifty mid select trading volume is increasing ?

The Nifty Midcap 100 Index comprises 100 tradable stocks listed on the National Stock Exchange (NSE). NIFTY Midcap 100 Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value. 

Weekly Option Expiry on Monday, hence Friday and Monday you can see good volume in the Options Chart.

High volume helps to trade without slippage.

How to start trading in Nifty Midcap Options? 

You can start trading in Nifty Midcap in 3 easy steps:

Step 1: Go to the F&O Dashboard on the brokers platform. 

2: search strike price you wanted to select.  Example MIDCPNIFTY 20th Nov 9300 CE.

3: Take trade based on your analysis

Increased liquidity – With increased liquidity, is validation of increased interest and trust of traders in NIFTY Midcap Select Fund..

NIfty mid cap lot size is 75 Qty, and require around 6 to 10 thousand for buying one lot

The NIFTY Midcap lot size consists of 75 units and necessitates an investment ranging from 80 thousand to 1 lakh for selling options per lot.

Summary 

Within seven months of expiry day change, the index demonstrated robust growth. The top 10 constituents by weightage include Max Healthcare Institute Ltd., Power Finance Corporation Ltd., REC Ltd., Indian Hotels Co. Ltd., Federal Bank Ltd., Tube Investments of India Ltd., AU Small Finance Bank Ltd., Persistent Systems Ltd., Coforge Ltd., and Adani Power Ltd. The trading volume for NIFTY Midcap Select has been on the rise, attributed to the Nifty Midcap 100 Index, which consists of 100 tradable stocks on the National Stock Exchange. Calculated using the free float market capitalization method, this index reflects the total free float market value of its stocks relative to a specific base market capitalization value. Notably, weekly options expire on Monday, contributing to increased trading volumes on Fridays and Mondays. For those interested in trading NIFTY Midcap options, the process can be simplified into three steps: access the F&O Dashboard on the broker's platform, search for the desired strike price, and execute a trade based on your analysis. The increased liquidity in NIFTY Midcap Select Fund validates the growing interest and trust of traders. Lastly, the NIFTY Midcap lot size is 75 units, requiring an investment of 6 to 10 thousand for buying one lot and 80 thousand to 1 lakh for selling options per lot. The enhanced liquidity not only facilitates smoother trading but also minimizes slippage concerns.

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