Introduction of F&O contracts on Nifty Midcap Select Index

NSE will be introducing Futures and Options contracts on the Nifty Midcap Select Index w.e.f. January 24, 2022. Nifty Midcap Select index aims to track the performance of the focused portfolio of 25 stocks within the Nifty Midcap 150 index.

The stocks in the index are selected from the Nifty Midcap 150 index based on availability for trading in the F&O segment, market cap, and average daily turnover. Stock weights are based on free-float market capitalization.

The current portfolio of the index includes the following companies:

Sr. No Company Name Symbol
1 AU Small Finance Bank Ltd. AUBANK
2 Ashok Leyland Ltd. ASHOKLEY
3 Balkrishna Industries Ltd. BALKRISIND
4 Bharat Electronics Ltd. BEL
5 Bharat Forge Ltd. BHARATFORG
6 Container Corporation of India Ltd. CONCOR
7 Federal Bank Ltd. FEDERALBNK
8 Godrej Properties Ltd. GODREJPROP
9 Gujarat Gas Ltd. GUJGASLTD
10 IDFC First Bank Ltd. IDFCFIRSTB
11 LIC Housing Finance Ltd. LICHSGFIN
12 MRF Ltd. MRF
13 Mahindra & Mahindra Financial Services Ltd. M&MFIN
14 Max Financial Services Ltd. MFSL
15 Page Industries Ltd. PAGEIND
16 Petronet LNG Ltd. PETRONET
17 REC Ltd. RECLTD
18 SRF Ltd. SRF
19 Shriram Transport Finance Co. Ltd. SRTRANSFIN
20 TVS Motor Company Ltd. TVSMOTOR
21 Tata Power Co. Ltd. TATAPOWER
22 The Ramco Cements Ltd. RAMCOCEM
23 Trent Ltd. TRENT
24 Voltas Ltd. VOLTAS
25 Zee Entertainment Enterprises Ltd. ZEEL

Top constituents in the index

Company’s Name Weight(%)
Tata Power Co. Ltd. 7.52
SRF Ltd. 7.07
Zee Entertainment Enterprises Ltd. 5.95
Voltas Ltd. 5.68
Bharat Electronics Ltd. 5.04
Shriram Transport Finance Co. 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

Sector Weight(%)
FINANCIAL SERVICES 26.63
AUTOMOBILE 13.21
INDUSTRIAL MANUFACTURING 8.63
POWER 7.52
CHEMICALS 7.07
MEDIA, ENTERTAINMENT & 5.95
CONSUMER GOODS 5.68
OIL & GAS 5.46
CONSUMER SERVICES 4.79
TEXTILES 4.71
CONSTRUCTION 4.39
SERVICES 3.39
CEMENT & CEMENT PRODUCTS 2.57
Statistics 1 Year 5 Years Since Inception
Std. 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

Fundamentals

P/E P/B Dividend Yield
26.8 3.21 0.94

Index performance as of December 31, 2021

You can check out the index factsheet for more information.



Contract specifications of the Nifty Midcap Select Index

Particulars Futures Options
Symbol MIDCPNIFTY MIDCPNIFTY
Instrument FUTIDX OPTIDX
Tick Size Re 0.05 Re 0.05
Lot Size 75 75
Trading Cycle 7 serial weekly contracts (excluding monthly expiry) and 3 serial monthly contracts
Expiry Day Last Tuesday of the expiry month for the monthly contracts and Tuesday of the expiry week for the weekly expiry contracts, excluding the expiry week of the monthly contracts. If Tuesday is a trading holiday, the expiry day will be on the previous trading day.
Strike Scheme - 30-1-30
Strike Interval - 50
Option Type - Call European (CE) and Put European (PE)
Settlement Cash Settled Cash Settled
Daily Settlement Price Closing price of the futures contract. If illiquid, then 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 Band Operating range of 10% of the base price A contract specific price range based on its delta value is computed and updated on a daily basis
Spread Contracts 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.


12 Likes

Which index will have the most correlation to this one? I guess it will be NIFTY MIDCAP 50?

Wowww…One more instrument for punters to gamble on and the expiry is on tuesday. Looks like exchanges are planning 5 different expiries on 5 trading days in a week.

6 Likes

As an option seller I would love that. But seems like nobody is interested in trading anything except nifty and banknifty. If exchange wants more volume then they should change the expiry of these two. Like nifty on Wednesday and banknifty on Thursday or vice versa.

I agree with @emrys11 . Volume is going to be a big issue. Traders seems to only love nifty and bank nifty. Nifty IT (previously) and Fin Nifty (currently) have failed to get traders attention

I feel the volume would be better than finnifty. Finnifty was more of extended bank nifty. Here I feel index will be used to hedge exposure to midcaps and volume would be higher.
Anyways. Only time will tell.

3 Likes

Its high time we get hedging instruments for other indices as well. Nifty and Bank NIfty covers only the top companies.

Hedging instruments which has volumes for other indices is the need of the hour

1 Like

What is Strike scheme ?

30 ITM, 1 ATM and 30 OTM.

1 Like

how to use such scheme in trade ?

How to see madcapnifty index chart rather than further chart ?

Search for “Nifty MID SELECT”

RIP Liquidity :neutral_face:

Do you guys think, liquidity may come in next few days?

Midcap index Starts with bloodbath of almost 4% . Wow

Hoping :cry: :cry:

The future doesn’t seem bright for MIDCPNIFTY FnO😅

Future have liquidity then option.

Ask bid spread is too much.

No, it don’t. The only liquidity it has is because of arbitrage.

For options, sellers are guessing a good price and just placing sell limit order. Sellers dont wanna sell at all, unless they get their ridiculous price.

1 Like

I hope @Sensibull will add this contract soon to its product.