INDIAVIX
- Weekly Chart For the time being, it appears that 12 is a good support level and 16 is a good resistance level.
Please keep in mind that #IndiaVix is a simple concept that describes how quickly and unpredictably the Nifty 50 index is expected to change over the next 30 days.
Consider volatility to be negligible/dead below 15.
Above 23, consider jitters/pessimism in market sentiment.
Consider fear in the market sentiment above 28.
At 10-11 range, I expect markets to top out, which may result in profit booking or distribution at higher levels. At this VIX level, I would be extremely cautious of the market because there is a negative correlation between the India Vix and the Nifty 50, which is also reflected in the charts. Markets typically peak when the VIX is at its lowest, and markets typically bottom when the VIX is at its highest. This is an important input for index trades.
You'll also notice that I've drawn yellow vertical lines for the last six years to indicate the first week of January, when volatility begins to rise before the budget session ( also reflecting with red arrows ). I would expect the VIX to begin rising around December 15th to December 18th and may hover around 18 to 20 levels right before budget ( indicated with 2 double red arrows )
p.s - Please note any negative news can spike VIX by 10% in no time
Let's see how the story develops. Best wishes!
Disclaimer -
- The opinions expressed here are my own. This is for my own records as well as what I see on charts.
- If you are referring to this, please keep in mind that it is only for educational and research purposes.
- Past performance is no guarantee of future results.
- You must accept responsibility for any decision you make. DO NOT TAKE THIS AS AN INVESTMENT RECOMMENDATION.
- It's your hard-earned cash. Trade / Invest wisely, keeping in mind your trading style, goals and objectives, time horizon, and risk tolerance.
- Before investing, conduct your own research and consult with a financial advisor.
TIA!