This F&O expiry week is a holiday-shortened week, as markets would remain closed on 14 April on account of Ambedkar Jayanti and Mahavir Jayanti. Hence, weekly futures and options will expire on Wednesday, 13th April 2022, instead of Thursday. Weekly futures and options contracts expire every week on Thursday, as a fixed standard expiry day for the stock markets. However, if any Thursday is a trading holiday, where the stock market remains closed, then the previous day or the Wednesday is considered the expiry day. Stock markets usually witness high volatility as the expiry day marks the closure of F&O contracts.
Similarly, the next week’s F&O expiry week would start from Monday 18 April instead of Friday, as stock markets will observe a holiday on 15th April, on the occasion of Good Friday; those contracts would expire on the following Thursday, 21 April.
Also read: F&O trading guide for this week: How to trade Nifty, Bank Nifty; watch these support, resistance levels
Domestic equity markets ended the previous week’s weekly expiry fragile amid weak global market setup and volatility. Nifty was unable to sustain above the 18000 mark and reversed its gains from Tuesday onwards. NSE Nifty 50 index settled 7th April expiry on a negative note, falling 168 points or 0.94 per cent to finish at 17,639. Bank Nifty also failed to hold gains and closed marginally lower at 37,557. India VIX (the volatility index) which indicates the degree of volatility traders expect over the next 30 days in the Nifty 50 index, ended at 19 levels, down 0.13 per cent.
India VIX, a market volatility indicator often called the fear gauge is currently trading at 18.25 per cent as compared to 19 per cent last week. Implied Volatility of Nifty ATM options for the current series is at 15.90 per cent in contrast to 18.23 per cent of last week, indicating low volatile movement on either sides in expiry session, Rajesh Palviya, VP – Research (Head Technical & Derivatives), Axis Securities, told FinancialExpress.com