The India Walletty Index (Wicks), known as the scale of fear, jumped 66 percent on Monday. This is the biggest bounce ever in it. This gains in this index came due to increasing concerns of recession in the US and its impact on corporate income and investment flow.
Wicks, which depicted market fluctuations based on index option prices, closed at 22.8, its highest level since June 2024. In June 2024, there was a huge ups and downs in the index due to uncertainty caused by the results of the Lok Sabha elections. According to analysts, this bounce in Vicks is an indication that investors are concerned with global developments and they see more weakness in share prices.
Technical analyst Rajesh Bhosle in Angel One said, “This heavy bounce in instability is a sign of increasing uncertainty among investors. Nevertheless, the last hour of trading reflects the strong trend of domestic market traders, which remain largely adamant despite the difficult situations. ‘As the counter -duty of American President Donald Trump, China’s retaliation has increased further panic in the market. Analysts have described the current market atmosphere as ‘extremely worrying’.
Srikanth Chauhan, head of equity research in Kotak Securities, said, ‘The market’s short -term approach remains weak. Given the increasing instability and uncertainty, we have suggested traders to take a vigilant stand in the coming days. They have warned that if the Nifty slips below 22,000 levels, the decline may increase. The Nifty 50 index closed at 22,162 after reaching the intra-day of 21,744, which is 3.24 percent less than the previous day’s bandh.
Nagraj Shetty, senior technical research analyst at HDFC Securities, said, “The trend of Nifty is negative with extreme instability. Monday’s 21,743 swing can now be considered important support for short term and purchases at lower levels can be expected. The resistance level for the index is 22,400. ‘
Manish Jain, Chief Strategy Officer and Director of Mirai Achat Capital Markets, advised to adopt a ‘cautious optimistic’ approach. But in view of the challenging global atmosphere, warned of a possible income deduction of up to 30 percent. He said, ‘If there is a decrease in income, then the Nifty can also go down by 20,000 or below. Investors should keep a close watch on this and upcoming income results.
On Friday, the CBOE VIX of the Chicago Board Options Exchange had jumped 15.29 points or 51 per cent to 45.31, the highest level in five years. The US selling of 10 percent in two days has increased the instability after the US counter -charge.
First Published – April 7, 2025 | 10:10 pm IST
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