Nifty monthly expiry meets CAS today: Why the last 30 minutes of the Tuesday trading session could be most important
AI Summary
The introduction of the Closing Auction Session (CAS) has added a layer of complexity to market dynamics, particularly on expiry days. Retail investors should be prepared for increased volatility as the CAS can lead to unexpected price movements, especially in the final minutes of trading. This could create both risks and opportunities; thus, investors should closely monitor their positions and consider the potential for sharp swings in stock prices during these periods.
Market participants should brace for heightened volatility in the second half of Tuesday’s trading session as both weekly and monthly futures and options (F&O) contracts expire today. Nifty derivative contracts typically expire on the last Tuesday of every month. If the scheduled expiry day is a trading holiday, the expiry is moved to the preceding trading day.
The expiry of derivatives contracts is nothing new, but the closing auction session (CAS) is. CAS, introduced on 3 August this year, has led to unexpected price swings and market uncertainty, prompting the Securities and Exchange Board of India (Sebi) to propose a revamp of the settlement methodology for derivatives contracts.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 29 September 2026.
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