Global Market Optimism Boosts Indian Stock Market

The Indian stock market experienced a strong rebound on Thursday, with the Nifty 50 index opening at 24,615 and touching an intraday high of 24,854. The key benchmark index is currently trading around 24,750. The India VIX, a measure of market volatility, improved by over 16% to 17.7025.

Market Experts Weigh In

According to market experts, the rally in the Indian and global markets is attributed to the easing of tensions in the US-Iran war, as well as technical and derivative factors. Anuj Gupta, a SEBI-registered market expert, notes that the India VIX Index can provide insights into the daily, weekly, and monthly range of the Nifty 50 index.

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India VIX Index Formula

Using the formula [Nifty 50 current level x {(India VIX current level/ Square root of 52}/100], the possible weekly deviation in the Nifty 50 index can be estimated. With the current level of the Nifty 50 at 24,750 and the India VIX at 17.9400, the possible weekly deviation is estimated to be 615 points.

Weekly Range Estimation

Based on the formula, the possible weekly range of the Nifty 50 index is estimated to be between 24,135 and 24,365. However, it is essential to note that the rest of the movement is determined by the fundamentals.

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Derivatives and Technical Factors

Hitesh Tailor, Technical Research Analyst at Choice Broking, attributes the market rebound to technical and derivative factors, including the cooling in volatility and short covering. The Nifty Put–Call Ratio has slipped to lower levels, reflecting excessive pessimism, which typically triggers a tactical pullback.

US-Iran War and Market Sentiment

The optimism surrounding the de-escalation of the US-Iran war has contributed to the market rebound. Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth, notes that the Nifty 50 index may break above the 24,900 hurdle on a closing basis if the de-escalation buzz intensifies.

Key Takeaways

• The Nifty 50 index has rebounded strongly, with the index currently trading around 24,750.
• The India VIX has improved by over 16% to 17.7025.
• Market experts attribute the rally to technical and derivative factors, as well as the easing of tensions in the US-Iran war.
• The possible weekly range of the Nifty 50 index is estimated to be between 24,135 and 24,365.