F&O Lot Size Changed in Nifty 50 and 54 Stocks

The April F&O series wrapped up on a high note, setting a positive tone for the new May F&O series. As we step into the fresh series, Gift Nifty is showing a modest uptick, indicating a slightly optimistic start to the trading day. For traders, the beginning of a new F&O series brings opportunities as well as a few critical changes to keep in mind.

Major Changes in Nifty 50 Contract

The National Stock Exchange (NSE) recently announced a revision in the lot size for Nifty 50 derivatives. Starting from April 26, the standard market lot for Nifty 50 contracts has been reduced from 50 to 25. This adjustment applies to all types of contracts, including weekly, monthly, quarterly, and half-yearly expiries that were available for trading on April 26.

Other Changes in the Derivative Market

The NSE has also revised the lot sizes for other indices and individual stocks. The Nifty Financial Services market lot has been reduced from 50 to 25, while the Nifty Midcap Select lot has dropped from 75 to 50. However, these changes will come into effect starting from the July expiries.

In addition to indices, the NSE adjusted the lot sizes of 54 individual stocks out of 182. Most of these changes involve a reduction in lot sizes, with 42 stocks—including Abbott India, Adani Ports, Alkem Lab, Ambuja Cements, BEL, Bharti Airtel, and others—halving their lot sizes from April 26. 

Here are a few stocks listed in the table

However, there are six stocks set for an upward revision in July: Atul, Bandhan Bank, Dalmia Bharat, Navin Fluorine, Polycab, and Zee Entertainment. Meanwhile, other notable stocks like Bajaj Auto, Godrej Properties, Grasim Industries, PFC, Tata Motors, and Tata Power will see a reduction in their lot sizes, with changes also effective from July.

What Does This Mean for Traders?

Traders should be aware of these adjustments, especially those engaged in options and futures contracts. Reduced lot sizes can lead to greater liquidity and flexibility in trading strategies, while upward revisions may require a larger capital commitment. It’s essential to consider these changes when planning your trading activities for the May F&O series and beyond.

With these revisions, the market is adapting to evolving trading dynamics, offering new opportunities for both novice and experienced traders. As always, keep an eye on market trends and adjust your strategies accordingly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.