F&O Talk | India VIX may surge to 29 level ahead of election outcome: Sudeep Shah of SBI Securities
Nifty closed the week, as well as, the month in the red at 22,530 ahead of the exit polls and election outcome. High fluctuations were witnessed during in May, as India VIX rose to 24 levels. Caution and risk management seem to be a trader's friend given the volatility that is expected to persist till the election outcome.
Sudeep Shah of SBI Securities interacted with ET Markets regarding the current outlook on Nifty and Bank Nifty ahead of the election outcome week. Following are the edited excerpts from his chat:
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowChief Executive Officer ProgrammeVisitWith the monthly expiry out of the way, where do you see Nifty50 heading in the June series?
In the May series, the Nifty Futures have ended on a flat note at 22,488 level. However, it's worth highlighting that the Rollover for the Nifty Index futures was significantly higher at 71.76% compared to the previous month's 65.12% and the three-month average of 68.88%.
Technically, the benchmark index Nifty has marked a fresh all-time high of 23,110 level. However, it has resisted near the upper trendline of rising channels and thereafter witnessed profit booking in the last four trading sessions. This resulted in the formation of a Dark Cloud Cover candlestick pattern on a weekly scale, which is a bearish sign.
On the last three occasions, when the index
