DOMBIVLI SHIKSHAN PRASARAK MANDAL’S

K. V. PENDHARKAR COLLEGE OF ARTS, SCIENCE AND COMMERCE

AUTONOMOUS).
Dombivli (East) 421203, Dist. Thane.

DEPARTMENT OF ACCOUNTING & FINANCE

SECOND INTERNAL EXAMINATION - SEMESTER VI
PRESENTATION

For the subject of

SECURITYANALYSIS AND PORTFOLIO MANAGEMENT
By
GAURI RAJENDRA HANDE
234518
TYBAF (B)

To the Subject Teache

Prof PRANALI RAJOLI
INVESTMENT IN BANK
NIFTY
 INTRODUCTION
 The Nifty Bank index, often known as Bank Nifty, is made up of
the most liquid and well-capitalized Indian banking firms.
 It serves as a benchmark for investors, capturing the capital market
performance of Indian bank stocks. The banking sector is
represented by 12 companies in the index.
 Nifty Bank Total Returns Index or Bank Nifty TRI are two index
variants. The index first debuted in 2003.

How TO WORK IN BANK

. Nifty
 Bank Nifty has a number of pros and cons. On one hand, Bank
Nifty is particularly appealing to traders aiming for a rapid profit
 because to its high volatility, as price spikes are more likely with
this script.
 This feature also appeals to intraday traders, as any profit margin of
greater than 2% every day is considered a solid day's trading for a
trader. However, it is because of this unpredictability that this script
is exceedingly risky.
 if you are not there to book your profit on time or do a terrible deal,
your chances of losing money are increased, and so the amount of
money you might lose.

ADVANTAGES
 Diversification: Bank Nifty represents a basket of banking stocks,
providing a diversified exposure to the banking sector.
 Liquidity: It's a liquid index, meaning there's usually good trading
volume, making it easier to buy and sell.
 Reflects Economic Health: Being a part of the stock market, Bank
Nifty can reflect the overall economic health as the banking sector is
a key indicator.
 Derivative Trading: Bank Nifty options and futures are actively
traded, allowing for various trading strategies and hedging
opportunities.

. DISADVANTAGES
 Volatility: The banking sector can be highly sensitive to economic
changes, leading to volatile movements in Bank Nifty.
 Concentration Risk: As it primarily includes banking stocks,
there's concentration risk if the banking sector faces challenges.
 Interest Rate Sensitivity: Banks are sensitive to interest rate
changes; therefore, Bank Nifty can be impacted by monetary policy
decisions.
 Market Risk: Like any equity investment, Bank Nifty is subject to
general market risks and can be affected by global economic
conditions.
BANK NIFTY GRAPH 5YEAR
 ANALYSIS OF GRAPH
 The data’s are consolidated and OHLC of the 5 year is calculated. In
accordance to this data’s, movement and actual growth of a year is
calculated as per the formula and value are shown in table.
 The data analysis of bank nifty is shown below for the period of one
year from 2019 to 2024.
 The 30 days moving average and simple moving average is
calculated as per the data’s shown in below table

ANALYSIS OF TABLE
OPEN 28000
CLOSE 46160
 HIGH 48479
MOVEMENT 20479
ACTUAL GROTH 18160
These five year data’s are analyzed keeping various tools and technical
indicators are used here to predict the bank nifty whether to buy, sell or hold
the signal. Also this study tries to predict the future forecasting data’s.

Therefore- The bank nifty is bullish trend

WHY ARE INVESTING IN

BANK NIFTY
 The debate and research on active versus
passive have shown that passive large-caps
have done better as the scope for the active
 fund manager is limited to 100 stocks, whereas in small-caps, active
management has done better as the fund manager has a wider scope.
 In the passive funds space – index schemes or exchange traded
funds (ETFs) – several options are available

CONCLUSION
 Bank NIFTY is a tempting option for investors who are looking to
make investments to gain quick profit, but its high volatility warns
against taking risks.
 You may trade bank nifty options in a number of methods, and with
the right bank nifty tips and trading strategy; you can slowly
develop and make more profitable deals.
THANKS
YOU.