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:
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
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.
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.
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.
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