Srinagar, June 24 -- This guide will explain the difference between the Nifty option chain and the Bank Nifty option chain, and how to use them to make better trading decisions.

What Is an Option Chain?

An option chain is a table that shows all available options for an index. It includes details like:

By looking at the option chain, traders can guess what levels the market may find support or resistance.

Understanding the Nifty Option Chain

The Nifty option chain is based on the Nifty 50 index. It includes the top 50 companies across sectors like banking, IT, oil & gas, and FMCG. So, it gives you a broad view of how the overall market is performing.

Let's say the Nifty is trading at 23,600. You see that a lot of people are buying ca...