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Bank Nifty is a collaborative index of the 12 highest caps and the most liquid stocks from the banking sector. There are many benefits and even disadvantages to bank nifty. Bank nifty is highly volatile and hence it attracts traders who want to generate huge returns and high profit. On the other hand, this volatility can also be the cause of high risk and can turn into a cause of loss for the traders. That is why it turns important for the traders to move according to the technical charts.