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CAS chaos: Nifty’s indicative price drops 2% in 2 seconds, later recovers on monthly F&O expiry day
Economic Times 2 hrs ago·29 Sept 2026, 10:23 am
A sharp, two-second flash crash on the Nifty 50 index caused panic among traders on a recent monthly expiry day. The index's indicative price suddenly plunged nearly 2%, falling from 22,684 to 22,249 at 3:20:01 PM. This rapid drop occurred during the closing auction, a critical window where market participants finalize their positions for the day.
While the immediate drop was alarming, the index quickly recovered and closed above its pre-crash level. The event highlights the inherent volatility of monthly F&O expiry days, when liquidity can shift rapidly. For investors, such sharp intraday moves serve as a reminder to keep stop-losses in place and avoid making impulsive decisions based on short-term price fluctuations.
Going forward, market participants should monitor liquidity levels during the closing auction. A sudden drop in trading volume or a spike in volatility can trigger similar price swings. It is important to distinguish between a temporary technical glitch and a broader market trend before reacting to any sharp intraday movements.
Excerpt from Economic Times
Nifty's indicative price sharply dropped by 2% during the closing auction session on monthly expiry day. The index fell from 22,684 to 22,249 within two seconds at 3:20:01. This sudden decline was followed by a rapid recovery, and it closed above the pre-CAS level. Typically, monthly expiry days bring heightened…Read the original at Economic Times
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