Nifty gamma exposure (NiGEX), which measures liquidity and volatility, increased on April 26th with a closing value of 49L, after being at 38L on April 25th. While this indicates a positive gamma environment, it's important to note that NiGEX should not be the sole factor in making investment decisions. Theta, the cost of owning gamma, benefits option owners in this scenario, as well as rewards delta, with call owners seeing a positive effect when asset prices rise. This also reduces directional risk and variance.
An increase in NiGEX, was more pronounced than smaller increase in Nifty which closed with 0.3% gains on April 26th. Additionally, NiGEX has exhibited volatile behavior over the past 200 days, with an average value of 271K and a median value of 1073K. The value range has been wide, ranging from a low of -116L to a high of 50L.
To learn more about Gamma Exposure and NiGex, refer to the article on What is GEX (Gamma Exposure)?
To know more about VIX, visit the NSE page at VIX
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