Nifty Financial Services FIN Nifty weekly options contract discontinues today: All you need to know

As per the NSE Circular as the country's leading bourses are intending to allow only one deivative contract per exchange, the weekly index option contract for FINNIFTY  will end today. So, today as has been informed by the exchange is the last trading date as well as expiry date for the FINNIFTY contract.

This is the index for the Nifty Financial Services precisely and the move is intended to reduce volatiltiy as well as speculation. 

The other two weekly contracts that have been done away with are BANKNIFTY and MIDCPNIFTY and FINNIFTY index. Ths move has been done following the SEBI's circular stating that each exchange may provide derivatives contracts for only one of its benchmark index with weekly expiry and shall be effective from November 20, 2024., i.e. from this date weekly derivatives contracts would only be available on one benchmark index for each Exchange.

Accordingly, Exchange will continue to make weekly index options available only on the Nifty 50 Index (NIFTY). Further weekly index option contracts shall be discontinued in the below mentioned 3 indices, it added.

Jigar Patel- Sr. Manager- Equity Research at Anand Rathi said, "Today marks the final weekly options expiry for FIN Nifty, with the transition to a monthly expiry expected to bring notable changes to the market. Volatility will likely decrease as the frequent speculation driven by weekly options fades, creating a more stable trading environment. This shift may also slightly reduce overall Futures and Options (F&O) volumes due to the absence of regular weekly turnover from FIN Nifty options"

On the positive side, the Nifty index could gain greater stability as heavyweight stocks like ICICI Bank, HDFC Bank, Axis Bank, and SBIN—key contributors to both FIN Nifty and Nifty indices—would face reduced short-term speculative pressure, potentially leading to more consistent performance in these critical stocks, noted Patel.