Market Open In Flat Territory..
Sunday, October 29, 2023
Friday, October 27, 2023
Thursday, October 26, 2023
Monday, October 23, 2023
The India VIX, which measures the expected volatility for the next 30 days in the Nifty50, experienced a sharp decline today, dropping by approximately 6 percent and falling below 10.
Traders are puzzled by this trend because markets globally are under pressure and Indian shares too have fallen of late. A rising VIX indicates that market participants are expecting volatility to increase in the days ahead whereas a low VIX means traders expect less volatility. In a world marked by escalating geopolitical tensions, rising bond yields, and increasing crude oil prices, risk-on sentiments have been dampened globally. Despite these elevated risks, the VIX, which is displaying levels below 10, suggests that the markets are not perceiving these risks as significant. A low VIX spells bad news for option writers. That is because the premium on options is lower if traders expect the market to be less volatile.
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