The Nifty 50 index has seen a decrease of more than 7% since reaching its highest point last month. This decline is due to concerns about the earnings growth of Indian companies during the reporting season.

At the same time, the volatility gauge has increased by 2.7 points this month, which is the largest increase since May. Traders are closely watching the upcoming US presidential election, as the United States is India's largest trade partner.

In the options market, traders are using a strategy called a strangle, where they buy both puts and calls with different strike prices but the same expiration date. The current popular trade involves strikes at 24,500 and 24,400, while the index closed at 24,340.85 on Wednesday. This unusual positioning suggests that traders are uncertain about the market's direction after the US election.