CAS Auction Explained: How CAS Auction Changed Market Closing & Triggered Volatility On Expiry

The introduction of the Closing Auction Session (CAS) has created confusion among traders, especially on the weekly F&O expiry. Gaurav Sharma, Vice President & Head of Research, Globe Capital, explains that the new closing mechanism has led to temporary price differences between Nifty, Sensex, and GIFT Nifty, leaving many investors uncertain about the actual market close. He believes it may take a few trading sessions for participants to fully understand the new process. With expiry-day volatility adding to the uncertainty, traders are advised to stay cautious and closely monitor market movements before taking fresh positions.