@nithin can u add index basket in small case.
example : nifty50 basket, in which ability to choose nifty fno lot numbers and then small case converts it to equal value of nifty 50 stocks. That way i can convert my nifty put to stocks. also notification and readjustment system when nse add or removes stocks from index.
You need close to Rs 15 to Rs 20lks to buy 1 Nifty.
Eicher motors is at 4700, if you buy even one share or 0.6% weight you will need 150 x 4700 = Rs 6lks. So if you adjust similarly for all weights you will need a lot more money.
So ETFs are the right way to do this.
@MohammedFaisal, can you tell me approximately how much?
| Company & Stock Symbol | Weightage | Industry |
|---|---|---|
| HDFC Bank (HDFCBANK) | 11.60% | Financial Services |
| Reliance Industries (RELIANCE) | 9.75% | Oil & Gas |
| ICICI Bank (ICICIBANK) | 7.93% | Financial Services |
| Infosys (INFY) | 5.06% | Information Technology |
| Larsen & Toubro Ltd (L&T) | 4.37% | Construction |
| ITC (ITC) | 3.81% | FMCG |
| Tata Consultancy Services (TCS) | 3.75% | Information Technology |
| Bharti Airtel (BHARTIARTL) | 3.60% | Telecommunication |
| Axis Bank (AXISBANK) | 3.32% | Financial Services |
| State Bank of India (SBIN) | 3.21% | Financial Services |
| Kotak Mahindra Bank (KOTAKBANK) | 2.9% | Financial Services |
| Hindustan Unilever (HINDUNILVR) | 2.58% | FMCG |
| Bajaj Finance (BAJFINANCE) | 2.15% | Financial Services |
| Asian Paints (ASIANPAINT) | 1.77% | Consumer Durables |
| Mahindra & Mahindra (M&M) | 1.67% | Automobile |
| Titan Company (TITAN) | 1.65% | Consumer Durables |
| HCL Technologies (HCLTECH) | 1.61% | Information Technology |
| Maruti Suzuki India (MARUTI) | 1.60% | Automobile |
| Sun Pharma (SUNPHARMA) | 1.50% | Healthcare |
| NTPC (NTPC) | 1.41% | Power |
| Tata Motors (TATAMOTORS) | 1.41% | Automobile |
| Tata Steel (TATASTEEL) | 1.18% | Metals & Mining |
| UltraTech Cement (ULTRACEMCO) | 1.18% | Construction Materials |
| IndusInd Bank (INDUSINDBK) | 1.08% | Financial Services |
| Power Grid Corporation (POWERGRID) | 1.08% | Power |
| Bajaj Finserv (BAJAJFINSV) | 1.03% | Financial Services |
| Nestle India (NESTLEIND) | 0.98% | FMCG |
| Adani Enterprises (ADANIENT) | 0.88% | Metals & Mining |
| Coal India (COALINDIA) | 0.88% | Oil & Gas |
| Tech Mahindra (TECHM) | 0.86% | Information Technology |
| Oil & Natural Gas Corp. (ONGC) | 0.86% | Oil & Gas |
| Hindalco Industries (HINDALCO) | 0.85% | Metals & Mining |
| JSW Steel (JSWSTEEL) | 0.84% | Metals & Mining |
| Grasim Industries (GRASIM) | 0.84% | Construction Materials |
| HDFC Life Insurance Co. (HDFCLIFE) | 0.84% | Financial Services |
| Dr. Reddy’s Laboratories (DRREDDY) | 0.80% | Healthcare |
| Bajaj Auto (BAJAJ-AUTO) | 0.78% | Automobile |
| Adani Ports and SEZ (ADANIPORTS) | 0.75% | Services |
| SBI Life Insurance Co. (SBILIFE) | 0.73% | Financial Services |
| Cipla (CIPLA) | 0.72% | Healthcare |
| Shriram Finance (SHRIRAMFIN) | 0.67% | Financial Services |
| Wipro (WIPRO) | 0.66% | Information Technology |
| Britannia Industries (BRITANNIA) | 0.65% | FMCG |
| Tata Consumer Products (TATACONSUM) | 0.64% | FMCG |
| Apollo Hospitals Enterprise (APOLLOHOSP) | 0.63% | Healthcare |
| Eicher Motors (EICHERMOT) | 0.60% | Automobile |
| LTIMindtree Ltd (LTIM) | 0.58% | Information Technology |
| Hero MotoCorp (HEROMOTOCO) | 0.56% | Automobile |
| Divi’s Laboratories (DIVISLAB) | 0.55% | Healthcare |
| Bharat Petroleum Corp. (BPCL) | 0.47% | Oil & Gas |
Dhan has this feature where you can select a fund’s outperformers. Or you can select a fund’s holdings (all of them or only the ones you want).
This way, you can select top stocks from fund houses having a good reputation like PPFAS.
You can also do this by picking a index (such as momentum or some value index) and then select your preferred holdings.
We’d need 9.5L to buy 1 basket of Nifty stocks now.
This is still off by a few 100s to 1000s for a few stocks, we’d require a basket close to 1 Cr to achieve allocation based on the exact weightage.
| Stock Symbol | Weightage | Close Price | Shares | Investment Amount | Weightage Amount |
|---|---|---|---|---|---|
| HDFCBANK | 11.60 | 1683.80 | 70 | 117866.00 | 119513.70 |
| RELIANCE | 9.75 | 3130.80 | 32 | 100185.60 | 100453.33 |
| ICICIBANK | 7.93 | 1199.60 | 68 | 81572.80 | 81702.04 |
| INFY | 5.06 | 1566.75 | 33 | 51702.75 | 52132.70 |
| ITC | 3.81 | 424.90 | 92 | 39090.80 | 39254.07 |
| TCS | 3.75 | 3904.15 | 9 | 35137.35 | 38635.90 |
| BHARTIARTL | 3.60 | 1444.05 | 25 | 36101.25 | 37090.46 |
| AXISBANK | 3.32 | 1265.25 | 27 | 34161.75 | 34205.65 |
| SBIN | 3.21 | 848.95 | 38 | 32260.10 | 33072.33 |
| KOTAKBANK | 2.90 | 1802.50 | 16 | 28840.00 | 29878.43 |
| HINDUNILVR | 2.58 | 2473.05 | 10 | 24730.50 | 26581.50 |
| BAJFINANCE | 2.15 | 7115.55 | 3 | 21346.65 | 22151.25 |
| ASIANPAINT | 1.77 | 2917.05 | 6 | 17502.30 | 18236.14 |
| M&M | 1.67 | 2866.65 | 6 | 17199.90 | 17205.85 |
| TITAN | 1.65 | 3404.20 | 4 | 13616.80 | 16999.79 |
| HCLTECH | 1.61 | 1440.50 | 11 | 15845.50 | 16587.68 |
| MARUTI | 1.60 | 12033.85 | 1 | 12033.85 | 16484.65 |
| SUNPHARMA | 1.50 | 1520.85 | 10 | 15208.50 | 15454.36 |
| NTPC | 1.41 | 378.35 | 38 | 14377.30 | 14527.10 |
| TATAMOTORS | 1.41 | 989.75 | 14 | 13856.50 | 14527.10 |
| TATASTEEL | 1.18 | 174.01 | 69 | 12006.69 | 12157.43 |
| ULTRACEMCO | 1.18 | 11667.90 | 1 | 11667.90 | 12157.43 |
| INDUSINDBK | 1.08 | 1464.50 | 7 | 10251.50 | 11127.14 |
| POWERGRID | 1.08 | 330.95 | 33 | 10921.35 | 11127.14 |
| BAJAJFINSV | 1.03 | 1588.15 | 6 | 9528.90 | 10611.99 |
| NESTLEIND | 0.98 | 2551.65 | 3 | 7654.95 | 10096.85 |
| ADANIENT | 0.88 | 3177.15 | 2 | 6354.30 | 9066.56 |
| COALINDIA | 0.88 | 473.15 | 19 | 8989.85 | 9066.56 |
| TECHM | 0.86 | 1430.35 | 6 | 8582.10 | 8860.50 |
| ONGC | 0.86 | 274.20 | 32 | 8774.40 | 8860.50 |
| HINDALCO | 0.85 | 693.55 | 12 | 8322.60 | 8757.47 |
| JSWSTEEL | 0.84 | 931.50 | 9 | 8383.50 | 8654.44 |
| GRASIM | 0.84 | 2670.45 | 3 | 8011.35 | 8654.44 |
| HDFCLIFE | 0.84 | 595.05 | 14 | 8330.70 | 8654.44 |
| DRREDDY | 0.80 | 6402.35 | 1 | 6402.35 | 8242.32 |
| BAJAJ-AUTO | 0.78 | 9501.65 | 1 | 9501.65 | 8036.27 |
| ADANIPORTS | 0.75 | 1478.10 | 5 | 7390.50 | 7727.18 |
| SBILIFE | 0.73 | 1491.95 | 5 | 7459.75 | 7521.12 |
| CIPLA | 0.72 | 1480.80 | 5 | 7404.00 | 7418.09 |
| SHRIRAMFIN | 0.67 | 2911.50 | 2 | 5823.00 | 6902.95 |
| WIPRO | 0.66 | 514.85 | 13 | 6693.05 | 6799.92 |
| BRITANNIA | 0.65 | 5475.55 | 1 | 5475.55 | 6696.89 |
| TATACONSUM | 0.64 | 1097.45 | 6 | 6584.70 | 6593.86 |
| APOLLOHOSP | 0.63 | 6185.70 | 1 | 6185.70 | 6490.83 |
| EICHERMOT | 0.60 | 4672.95 | 1 | 4672.95 | 6181.74 |
| LTIM | 0.58 | 5385.05 | 1 | 5385.05 | 5975.69 |
| HEROMOTOCO | 0.56 | 5579.60 | 1 | 5579.60 | 5769.63 |
| DIVISLAB | 0.55 | 4596.45 | 1 | 4596.45 | 5666.60 |
| BPCL | 0.47 | 303.95 | 15 | 4559.25 | 4842.37 |
A tangential question: Why are there no Short ETFs? If I want to short Nifty, I can just buy the Short Nifty ETF and hold it without any time limit on holding?
Regulations don’t allow it and there is no way a mutual fund can short all the 50 stocks for long term.
ah i see, i thought lot value of underlying will be same as stock options. so even this is not favourable for retail investors to do covered call and secured put.
now that SEBI is taking suggestions to improve fno, i believe brokers will be the one giving sugg; can you guys tell them to reduce lot size of stock options to underlying value of 25k or 50k so retail investors can invest via secured put and covered call. current lot value of stocks is 10lakh and above, this is only favourable to large players like mutual funds because we retail investors dont want to put large amount in few stocks.
From data you provided few month back that retail inv is now big part of market. so market is no more tug war between FII and DII, retail has big strength now , Investing will be more interesting if we retails can do covered call and secured put.
by the way, is it necessary for options to be traded in lots, why cant it be traded in any quantities like stocks, is there some technical reason behind it or is it just a habbit copied from western derivative markets?
No, they won’t reduce it; if anything, they are considering increasing it.
A derivative contract is associated with a certain size. If you had to trade it in any quantities, you could just trade stocks.
