According to Chandan Taparia of Motilal Oswal, market volatility is expected to increase during monthly options expiry.
On December 5, the Nifty 50 experienced a significant swing of over 500 points, indicating the high fluctuations in the options market.
Traders are now focusing on weekly expiries for the Nifty due to recent Sebi guidelines that have consolidated weekly expiries into a single day for derivative contracts of one index. This change is expected to impact trading strategies and market behavior as participants adjust to the new structure.