A Study On Nifty Hedging Opportunities At Basan Equity Broking Limited

Abstract

The National Stock Exchange (NSE) Nifty 50 index is a key benchmark for the Indian stock market, and investors often face volatility that can impact their portfolios. Hedging strategies play a crucial role in protecting investments from potential losses and managing risk effectively. This study explores various derivative-based hedging techniques, including options and futures, to mitigate market uncertainties. The research examines strategies such as protective puts, covered calls, straddles, strangles, and Nifty futures hedging, assessing their effectiveness in different market conditions. Additionally, the study analyzes how risk-adjusted returns can be optimized using these strategies while considering market trends, implied volatility, and macroeconomic factors. Through historical data analysis and real-world case studies, this study provides insights into the practical application of hedging techniques for institutional and retail investors. The findings aim to enhance risk management practices, helping investors build a resilient and well-balanced investment portfolio in a dynamic financial environment.