Indian Finance Minister Nirmala Sitharaman announces corporation tax rate cuts and slashed to 22% (effective rate 25.17% including cess and surcharge) and that’s the Internation news, probably the most favorite talk among the media, traders, investors, promoters and almost every market participants this weekend.
The news not only spooked the markets but also the technical indicators. Yes, the 10-day ATR which helps traders to identify volatile range made a fresh all-time high. i.e Indian Markets are highly trading in an extremely volatile environment historically which will likely to bring a lot of unpredictability in the short term trend.
India VIX ended -0.96% for the day at 15.4. Though not much of jump in India VIX it could be surprising for many. When the historical volatility is jumping anticipate the same to continue in the very shorter run.
The trend is likely to be uncertain and that is the true nature of the market most of the times. Extreme volatile markets bring too much of excitement and too much of speculation into the markets.
Money can be made/lost within few seconds/minutes. Position yourself accordingly!