Nifty Midcap Select Index: Traders’ New Favorite

On 26th April, 2023 , the expiry for NIFTY Midcap Select Index was changed from Tuesday to Wednesday and within 3 weeks of the change in expiry day, the index showed healthy growth with as many as 22,395 contracts being traded on 17th May, 23 from just 2,991 on 3rd May 2023.

What is the NIFTY Midcap Select Index?

There are 25 liquid midcap stocks in the Nifty Midcap Select index and these stocks are intended to reflect the performance of the portfolio. Stocks are chosen from the Nifty Midcap 150 index based on market cap, average daily turnover, and availability for trading in the F&O segment. Stock weights are based on free-float market capitalization. 

What are the major constituents of NIFTY Midcap?

The top 10 constituents for NIFTY Midcap Select Index by weightage are as follows:Among the sectors, Financial Services , Capital Goods and Consumer Services have the highest representation in terms of weight percentage at 28.48, 15.30 and 14.74 respectively.

How to start trading in Nifty Midcap on Paytm Money?

You can start trading in Nifty Midcap in 3 easy steps:

Step 1: Go to the F&O Dashboard on the Paytm Money App

Step 2: On the top of the dashboard, you will find the “Market Indices section”. Scroll to the right of that section to find “Nifty Midcap Select”

Step 3: Select Option Chain for options trading or Futures Contract for futures trading to begin trading Nifty Midcaps.

Alternatively, the Paytm Money App allows you to trade Nifty Midcap Select directly by typing “MIDCPNIFTY” and selecting the Futures or Options tab within the watchlist.

For trading in Futures, select “ Futures” tab underneath the Search bar-

For trading in options, select “Options” tab underneath the Search bar-

How did the NIFTY Midcap Select Fund Index become so popular?

Well, there are few prominent reasons for this:

1. No Transaction charges– On 28th March, 2023 , the National Stock Exchange ( NSE) issued a circular stating that no transaction charges will be levied on transactions done in Futures & Options Contract on NIFTY Midcap Select Index in the F&O Segment till 30th September, 2023.
2. Expiry on Wednesday– Option traders already had the option of trading NIFTY Financial Services having its expiry day on Tuesday, NIFTY 50 and NIFTY Bank having their expiry day on Thursday. Now with NIFTY Midcap Select having its expiry on Wednesday, traders have 4 high volume indexes having expiry in the middle of the week spread over three days giving them ample time to strategize and wisely choose their spread and options.
3. Increased liquidity– With increased liquidity, their is validation of increased interest and trust of traders in NIFTY Midcap Select Fund

For more details on the change in expiry for NIFTY Midcap Select Index, from Tuesday to Wednesday, kindly refer to our previous blog- NIFTY Midcap Select F&O Expiry Cycle.