Traders need to brace for violent swings as a result of news flows

Volatility is most likely to spike from May 23 onwards

The Nifty hit a new high in mid-April and has since been range-traded near the level with a small correction. We are well into results season and half-way through the election campaign. The market continues to have some undertone of nervousness, but the stable price line is backed up by a dip in the Vix from overbought levels.

Traders remain braced for violent swings as a result of news flows. The rupee was pushed up by the second round of RBI swap auctions, but it has weakened a bit since then. The April swap premiums were higher than in March.

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