Indices witness highly volatile week in recent times, but most of the volatility was in range of 15750 – 16400. Indices have gained on weekly basis around 3% – 4% and VIX was down 1.66% but continues to trade at 23.10, which is above comfort level of 20.
Daily volatility of 400 points on Nifty was 3 out of 5 trading days. It is not a normal scenario and technical indicators change too fast and at times be misguiding.
Increase in VIX above 25 – indicates fear and that would normally come in a falling market.
We are entering very critical week & final F&O expiry for May 2022 series this week.
Probable Negative play: Nifty below 15782 & VIX above 25
Probable Positive play: Nifty above 16362 & VIX below 20
Result season in India will conclude by 30-May-22, most of companies have declare their Q4FY22 result. So far major trend has been “Sell-on-Rise” and this may soon change to “Accumulate Gradually” level.
Why market was volatile this week?
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21-May-22 Technical & Fundamental Insight
Indices witness highly volatile week in recent times, but most of the volatility was in range of 15750 – 16400. Indices have gained on weekly basis around 3% – 4% and VIX was down 1.66% but continues to trade at 23.10, which is above comfort level of 20.
Result season in India will conclude by 30-May-22, most of companies have declare their Q4FY22 result. So far major trend has been “Sell-on-Rise” and this may soon change to “Accumulate Gradually” level.
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