Volatility Hits Rock Bottom, What It Means for the Week Ahead

In the holiday-truncated week gone by, the markets largely traded in a narrow and listless manner, with Nifty ending the week with minor gains. The index oscillated in a very tight range of just 227.80 points, between a high of 26,236.40 and a low of 26,008.60. Given the lack of directional cues and participation, the action remained largely stock-specific, and momentum was selective. Meanwhile, India VIX slipped further by 3.91% on a weekly basis to close at 9.15,  its lowest level, signaling complacency in the system. For the week, Nifty ended with a modest gain of 75.90 points, or 0.29%.