F&O cues: India VIX at 22-month high, more pain likely

India VIX (Volatility Index), the key gauge of the market volatility, touched its 22-month high. The index is currently trading at 34 levels, up 17 per cent compared to yesterday's close of 29.42.

Can markets turn further volatile ahead of tomorrow's Futures and Options expiry?

Check out the trading strategies with Chandan Taparia, Derivative Analyst, Anand Rathi Financial Services.

Smartinvestor : Are there any short positions that one can take in the Bank Nifty?

Chandan Taparia : YEs, lots of shorts seen in Nifty, Bank Nifty and heavyweights stocks and it would be tough to recover in this expiry as longs are trapped and shorts are on upper hand.

Smartinvestor : At what point would you suggest opening a fresh short position on the index ?

Chandan Taparia : Major trend is negative but now its tough to suggest here to go shorts as risk reward ratio wont favour for the trade. If any bounc eback comes then only shorts can be made with stop loss above 9000 levels in Bank Nifty index.
Smartinvestor : What about Nifty? Are there any markers in terms of going shorts?

Chandan Taparia : Market in panic mode.. trade with 5100 or 5000 puts to hedge as well as trade.

Smartinvestor : Market volatility has spiked close to 33 levels. With F&O expiry around the corner, how much more of an upside can be seen?

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