Understanding banknifty, banknifty future and banknifty options are very important before you invest. First thing first banknifty is very volatile. Sudden change happens at any movement. No boundary associated with it. For example 1 rupee can move up to 100 or 1000, same as 1000 came down to 1.
Bank Nifty comprises of leading banks which include both Private and Public sector banks and are publically listed in NSE
Most trader work in Bank Nifty because of its volume and liquid of trading is more than that of Nifty index. Bank nifty options come with weekly and monthly expiry.
There are also in the money out of the money and on the money options.
Banknifty is considered one the most volatile index.
Major bank constitute in bank nifty. Higher the bank stock considers that the bank nifty will also go up and same as with the sentiments in market. Banking stock help the bank nifty to go up and also depend on the participation of the banking sector. Public and private sector bank make a weightage in bank nifty.