Introduction of F&O contracts on Nifty Midcap Select Index – #18 by KD61 – Announcements – Trading Q&A by Zerodha

NSE will offer futures and options in the Nifty Midcap Select Index on January 24, 2022. The Nifty Midcap Select Index aims to track the performance of a concentrated portfolio of 25 stocks within the Nifty Midcap 150 Index.

The stocks in the index are selected from the Nifty Midcap 150 based on their availability for trading in the F&O sector, market capitalization, and average daily trading volume. Stock weights are based on free market capitalization.

The index’s current portfolio includes the following companies:

Mr. La The Company’s name Code
1 AU Small Finance Bank Ltd. obank
2 Ashok Leyland Ltd. ashokali
3 Balqrishna Industries Company Limited. Belkersand
4 Bharat Electronics Ltd. Nice
5 Bharat Forge Ltd. Bharatforge
6 Indian Container Company Limited. Concor
7 Federal Bank Ltd. Federal Bank
8 Godrej Properties Ltd. Goodregroup
9 Gujarat Gas Ltd. GUJGASLTD
10 IDFC First Bank Ltd. IDFCFIRSTB
11 LIC Housing Finance Ltd. to record
12 MRF Ltd. MRF
13 Mahindra & Mahindra Financial Services Ltd. M & MFI
14 Max Financial Services Limited MFSL
15 Page Industries Ltd. PageIND
16 Petronet LNG Limited. Petronet
18 SRF Ltd. SRF
19 Shriram Transportation Finance Ltd. SRTRANSFIN
20 TVS Motor Co., Ltd. TVSMOTOR
21 Tata Energy Co., Ltd. TATAPOOWER
22 Ramco Cement Company Limited. RAMCOCEME
23 Trent Ltd. Trent
24 Voltas Ltd. Turns
25 Zee Entertainment Enterprises Ltd. zill

The most important components of the indicator

The Company’s name Weight(%)
Tata Energy Co., Ltd. 7.52
SRF Ltd. 7.07
Zee Entertainment Enterprises Ltd. 5.95
Voltas Ltd. 5.68
Bharat Electronics Ltd. 5.04
Shriram Transportation Finance Ltd. 4.90
Trent Ltd. 4.79
Page Industries Ltd. 4.71
AU Small Finance Bank Ltd. 4.58
Godrej Properties Ltd. 4.39

Sector representation

section Weight(%)
Financial Services 26.63
car 13.21
Transformative Industries 8.63
Energy 7.52
Chemicals 7.07
Media and entertainment and 5.95
Consumer Goods 5.68
oil and gas 5.46
Consumer Services 4.79
Textiles 4.71
Construction 4.39
Services 3.39
Cement and cement products 2.57
statistics One year 5 years Since the beginning
Sexually transmitted diseases. deviation 22.43 22.59 27.05
Beta (NIFTY 50) 1.10 1.03 1.02
Correlation (NIFTY 50) 0.76 0.83 0.84

The basics

P/E. q/b profit return
26.8 3.21 0.94

Index performance as of December 31, 2021

You can check the index fact sheet for more information.

Contract Specifications for Nifty Midcap Select

details Futures Options
Code mid-age mid-age
a tool Photodex OPTIDX
tick size Regarding question 0.05 Regarding question 0.05
big size 75 75
trading cycle 7 serial weekly contracts (excluding monthly expiration) and 3 serial monthly contracts
Expiry Day The last Tuesday of the monthly contracts expiration month and Tuesday of the weekly expiration week, excluding the week of the monthly contracts expiration. If Tuesday is a trading holiday, then the expiration day will be on the previous trading day.
strike scheme 30-1-30
Strike interval 50
Cucumber type European Call (CE) and Put European (PE)
settlement cash settlement cash settlement
Daily settlement price The closing price of the futures contract. If it is not liquid, then the theoretical price will be considered
Final settlement price Index closing value on the last trading day Index closing value on the last trading day
quantity freeze 5500 5500
price range Operating range 10% of the base price The exact price range of a contract is calculated based on its delta value and updated on a daily basis
CFDs M1-M2; M1-M3; M2-M3/W1-W2; W1-W3; W1-W4; W2-W3; W2- W4; W2-W5; W3-W4; W3-W5; W3-W6

You can check the announcement from the exchange here.

Leave a Comment