The Nifty 50 and Sectoral Index Derivatives lot size change will become effective on April 26, 2024 - details inside!
Starting April 26, 2024, all Nifty contracts, including weekly, monthly, quarterly, and half-yearly expiries, will have reduced market lot sizes for trading.
The National Stock Exchange of India has recently announced adjustments in the market lot sizes for derivative contracts of significant indices such as Nifty 50, Nifty Financial Services, and Nifty Midcap Select. This alteration, effective from April 26, is part of the exchange's routine review of lot sizes for derivative contracts, by the guidelines established by the Securities and Exchange Board of India (SEBI).
DSIJ offers a service 'Pop Future Swing Trading" with recommendations for stock future swing trading tips based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here
According to a circular released by the exchange, the market lot for the Nifty 50 derivative contract will be reduced by half, decreasing from 50 to 25. Similarly, the lot size for the Nifty Financial Services derivative contract will decrease from 40 to 25, while for the Nifty Midcap Select, it will decrease from 75 to 50.
The following table shows the revision of the market lot:
|
Sr No
|
Underlying Index
|
Symbol
|
Present Market Lot
|
Revised Market Lot
|
|
1
|
NIFTY 50
|
NIFTY
|
50
|
25
|
|
2
|
NIFTY FINANCIAL SERVICES
|
FINNIFTY
|
40
|
25
|
|
3
|
NIFTY MIDCAP SELECT
|
MIDCPNIFTY
|
75
|
50
|
The market lot for the Nifty Bank index remains unchanged at 15.
|
Sr No
|
Underlying Index
|
Symbol
|
Present Market Lot
|
|
1
|
NIFTY BANK
|
BANKNIFTY
|
15
|
From April 26, 2024, significant adjustments are slated to impact the trading of Nifty 50 index derivatives and associated instruments. For the monthly April 2024 expiry, concluding on April 25, 2024, the current market lot size remains unchanged. However, a revised market lot size will be enforced for all contracts initiated on or after April 26, 2024, spanning weekly, monthly, quarterly, and half-yearly expiries. This modification is aimed at bolstering consistency and efficiency in trading operations.
In the realm of Nifty Financial Services index derivatives, existing monthly expiries will maintain their market lot size consistency until June 2024, with no alterations. However, starting from the July 2024 expiry, the market lot size will undergo revision. Weekly contracts with expiration dates up to July 23, 2024, will remain unaffected, while those expiring from August 6, 2024, onwards will experience revised market lots. Additionally, certain contract combinations, like those covering May 2024 to July 2024 and June 2024 to July 2024 expiries, will be ineligible for the day spread order book.
Similarly, in the domain of Nifty Midcap Select index derivatives, existing monthly expiries will retain their market lot size consistency until June 2024. Subsequently, starting with the July 2024 expiry, a revised market lot size will be introduced. Weekly contracts with expiry dates up to July 22, 2024, will remain unchanged, whereas those expiring from August 5, 2024, will observe revised market lots.
Disclaimer: The article is for informational purposes only and not investment advice.