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Closing Auction Session: How CAS Fuels Volatility in Nifty, Sensex on Expiry Day
Rediff 3 hrs ago·11 Sept 2026, 6:45 am
The closing auction session is a critical phase at the end of a trading day. During this specific window, traders place their final orders to buy or sell stocks. This activity is particularly intense on expiry days when index futures and options contracts settle. The sheer volume of these final orders can significantly impact the market, causing sharp movements in benchmark indices like the Nifty 50 and Sensex.
For investors, understanding this mechanism is key to managing risk. The auction session often leads to higher volatility compared to regular trading hours. Prices may swing rapidly as market makers adjust their positions before the market closes. This can result in a final closing print that differs substantially from the day's average price, creating opportunities for arbitrage but also posing risks for those holding positions overnight.
Excerpt from Rediff
The Closing Auction Session on expiry day has transformed into a volatile playground for retail speculators, sending the Nifty 50 and Sensex on an unpredictable 14-minute roller-coaster ride and raising serious concerns among seasoned traders about market integrity and increased speculation. The Closing Auction…Read the original at Rediff
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