Expiry Day of NIFTY BANK Monthly and Quarterly Contract Cycle
In derivative markets, the expiry day signifies the final day on which derivative contracts, such as options or futures, remain valid. Before the expiration, option holders have several choices: they can exercise the option, close their position, or let the contract expire worthless.
For instance, consider an investor who purchases a weekly Nifty option contract expiring on July 20, 2023. The investor must decide whether to exercise or exit the option on or before the expiry date, which is July 20, 2023.
Recently, the National Stock Exchange (NSE) announced changes to the expiry days of certain contracts:
Nifty Midcap Select (MIDCPNIFTY) Expiration Date Changes:
The NSE disclosed a modification in the expiry day of Nifty Midcap Select (MIDCPNIFTY) weekly and monthly contracts, shifting from Wednesday to Monday. This alteration will take effect on August 21, 2023. Consequently, if the MIDCPNIFTY contract was set to expire on Wednesday, August 23, 2023, it will now expire on Monday, August 21, 2023.
Nifty Bank (BANKNIFTY) Expiration Date Changes:
Additionally, the NSE announced a change in the expiry date of Nifty Bank (BANKNIFTY) weekly contracts, transitioning from Thursday to Wednesday, except during the expiry week of monthly contracts. This amendment will be implemented on September 6, 2023. Consequently, if the weekly BANKNIFTY contract was scheduled to expire on Thursday, September 7, 2023, it will now expire on Wednesday, September 6, 2023. However, there will be no changes in the expiry day for BANKNIFTY monthly and quarterly contracts.
It's important to note that there will be no alteration in the trading cycle, which comprises four weekly expiration contracts (excluding monthly contracts), three monthly expiration contracts, and three quarterly expiries (March, June, September & December cycle).
Earlier, on June 6, 2023, NSE announced a change in BANKNIFTY expiry from Thursdays to Fridays. The recent announcement is in response to BSE relaunching SENSEX and BANKEX derivatives that expire on Fridays.
As a result of these changes, traders will now encounter expiry days throughout the week.
The latest expiry days for various derivatives are as follows:
| Day | Contracts expired |
| Monday | Nifty Midcap Select weekly and monthly |
| Tuesday | FinNifty weekly and monthly |
| Wednesday | BankNifty weekly |
| Thursday | Nifty Weekly and Monthly and BankNifty Monthly |
| Friday | BSE’s SENSEX and BANKEX |
When is Nifty's expiry date?
Nifty has regular monthly and weekly expiration dates. Monthly expiry usually falls on the last Thursday of each month, with exceptions for holidays. Weekly expiries happen every Thursday.
Why is Nifty expiry important?
Nifty expiry signifies the end of current derivative contracts, impacting traders and investors. It often leads to increased market activity and volatility.
What happens on Nifty expiry day?
On this day, traders settle their derivative positions by either closing or letting them expire. The settlement price is determined based on underlying Nifty 50 stocks.
How does Nifty expiry affect markets?
Nifty expiry days are known for market volatility. Traders use strategies like hedging to manage risks during this time.
Can I trade Nifty options and futures on expiry day?
Yes, but be cautious due to increased volatility, especially during the "expiry hour."
What are the Nifty expiry series?
Nifty options and futures have near-month, next-month, and far-month contracts for traders to choose from.
Where can I find exact Nifty expiry dates?
Check the NSE website or INDmoney financial calendars from brokerage firms for up-to-date expiry dates.
Tips for trading on Nifty expiry day?
Have a well-defined strategy, stay informed, manage risks, and avoid over-leveraging your positions.