This was a 15-year high, seen previously only in 2007. This sent the equity markets into a tailspin. The markets remained under strong corrective pressure for three sessions in the truncated week, with the last trading day seeing a technical rebound.
The volatility gauge, INDIA VIX, showed a marginal increase of 3.08% to 10.62 on a weekly basis. It remains within a striking distance of 10.14, the lowest level seen on this indicator so far. This remains a point of concern as this will keep the market exposed to profit-taking bouts.
The highlight of the week was the surging US 10-YR yields that put pressure on global equities and India was resilient, but no different. The markets went on to test key support levels on the weekly charts and experienced a technical rebound from there.
Despite the corrective decline, the volatility index, as represented by India VIX, did not rise. In fact, it declined marginally by 2.20% to 10.66 on a weekly basis. This continues to keep the markets vulnerable to incremental corrective retrenchment.
There is one important change that is happening - beginning next week, Bank Niftys weekly options expiry is being moved to Wednesday. Until now, both Nifty and Bank Nifty s weekly options expired every Thursday. But from now on, Bank Nifty Options will expire/settle every Wednesday and Nifty on Thursday.