Before deciding which is best to trade, let’s get on to detail how they are made. Nifty future is a main benchmark index of NSE, it is made up of 50 best stocks across different sectors. So, in short Nifty future is mixture of stock from different sectors. Whereas Bank Nifty is index formed by the stocks of banking sector, it’s that simple. Now how to decide which is best to trade and why?
For that we have to look at the news if there is positive news flowing in markets then you need to buy Nifty future, as it will move more confidently. If the news is about banking sector, example RBI cuts interest rates, then banking stocks will move up sharply so in that case you should trade long on Bank Nifty Future. If RBI hikes interest rates then you can short sell Bank Nifty Future. So trading idea is to watch the news and decide the instrument to trade.