A morning walk down Dalal Street | VIX must cool down below 16 to get short term stability
Episode 1229, May 24, 2019, 01:30 AM
Sensex and Nifty broke above crucial levels for the first time in history. The S&P BSE Sensex climbed Mount 40K while the Nifty50 climbed above 12,000 levels.
Volatility was on the rise as Nifty fell nearly 400 points from its record high of 12,041 in the last hour of the trading session. According to CNBC-TV18, the Indian market witnessed its biggest intraday fall in last 11 years.
The S&P BSE Sensex hit a fresh record high of 40,124, and the Nifty50 hit a fresh lifetime high of 12,041 on Thursday. Let’s look at final tally on D-Street – the S&P BSE Sensex slipped 0.7 percent to 38,811 while the Nifty50 dropped 80 points to close at 11,657.
India VIX fell sharply by 29.77 percent to 19.04. India VIX made a new record high of 30.18 on May 22 and fell drastically post the election result. Now VIX has to cool down below 16 to get the short term stability in the market.
It was a classic case of ‘buy on expectation and sell on news’ which kind of have played out in Thursday’s session.