Expert Advice: Avoid Call, Put Options for Bitcoin (BTC) and Other Cryptocurrencies in the Coming Weeks – Basant Maheshwari

  • Eminent investor Basant Maheshwari warns against potential losses in equities and derivatives ahead of the 2024 Lok Sabha elections.
  • He advises retail investors and traders to avoid futures & options (F&O) markets until the election results are announced on June 4, 2024.
  • Maheshwari emphasizes that the Indian market is currently highly volatile, with the VIX consistently rising.

Investor Basant Maheshwari advises traders to steer clear of futures & options markets due to increasing volatility ahead of the 2024 Lok Sabha elections.

Market Volatility and the Upcoming Elections

Basant Maheshwari, who operates a SEBI-registered portfolio management company, Basant Maheshwari Wealth Advisers LLP, has recently expressed concern over the current market volatility in India. He warns that the market may not react predictably in the lead-up to the election results. As such, he advises against taking long or short positions amidst this volatility, suggesting that traders should instead wait until the market regains stability.

The Role of India VIX in Market Volatility

Maheshwari further elaborates on the market volatility by discussing the India VIX index. When this index reaches 10, it signifies that the market is prone to accidents. As a result, traders should prepare for such incidents as soon as the VIX rises and avoid making hasty decisions with their stock or option positions. The ‘India VIX’ is a fear gauge that indicates expected changes in the Nifty 50 index over the next 30 days. A significant drop in this index suggests that participants are confident about the near-term market trajectory. However, the recent 72% spike in the India VIX from April lows indicates that high volatility will likely persist for some time.

Conclusion

Maheshwari’s advice to traders is to exercise caution and avoid futures & options markets until the election results are announced. With the current market volatility and the unpredictable nature of the India VIX, traders should be prepared for potential market fluctuations and make informed decisions to avoid regrettable positions. As always, it is recommended that investors consult with certified experts before making any investment decisions, as market conditions can rapidly change.

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