What Is India VIX & Its impact on the Market Q: What is India VIX?
Ans) India VIX, or India Volatility Index, measures the market's expectation of volatility
over the near term. It is often referred to as the "Fear Gauge" as it indicates
the level of fear or risk in the market.
Higher VIX values indicate higher expected volatility,
while lower values suggest lower expected Volatility.
Q: What does a High India VIX indicate?
Ans) A High India VIX indicates that traders expect significant volatility
in the market. This often corresponds with market uncertainty or fear,
possibly due to Economic Events, Political instability, or other factors that
might cause large price swings.
Q: What does a L ow India VIX indicate?
Ans) Low India VIX suggests that traders expect the market to be relatively
stable in the near term. This typically corresponds with periods of market
confidence and lower perceived risk.
Q: How do major events affect India VIX?
Ans) Major Events such as Elections, Economic Announcements, Geopolitical Tensions,
or Natural Disasters can significantly impact India VIX. These events often lead to increased uncertainty and Fear, causing India VIX to spike as traders anticipate greater market volatility.
These are some of the Basic information about the India VIX and its impact on the Market
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NIFTY BANK Vs PSU Bank Vs Private Bank I was wondering who is pushing the Bank Nifty, so I decided to visualize this by this simple comparison.
The three major PSU banks are compared with the NIFTY BANK there market cap is as follow
3 (25%) PSU banks out of 12 holds 28.05186836 % of NIFTY BANK VALUE.
9 (75%) Private banks out of 12 holds 71.94813164 % of NIFTY BANK.
YoY in % YTD in % 30 mar to 18 Nov in %
BANK NIFTY -5.56 -8.14 57.31
PSU BANK* -41.95 -43.64 6.03
State Bank Of India -25.47 -26.3 31.7
Punjab National Bank -49.1 -52.8 -7.29
Bank Of Baroda -51.28 -51.82 -6.32
PRIVATE BANK** -17.32 -19.41 62.00
INDUSINDBK -42.02 -45.4 96.12
AXISBANK -13.6 -15.58 72.68
ICICIBANK -1.29 -8.21 56.2
HDFCBANK 11.16 9.92 68.91
RBLBANK -32.71 -36.7 47.8
KOTAKBANK 12.16 9.91 42.9
BANDHANBNK -37.12 -29.3 66.43
FEDERALBNK -32.51 -33.8 45
IDFCFIRSTB -20 -25.6 62
*Average of PSU banks included in NIFTY BANK only
** Average of Private banks included in NIFTY BANK only
(YoY) in % YTD in % 30 mar to 18 Nov in %
BANK NIFTY -5.56 -8.14 57.31
PRIVATE BANK** -17.32 -19.41 62.00
PSU BANK* -41.95 -43.64 6.03
Where BANK NIFTY is down by 5.5% PSU BANK* is down by 41.9% on YoY basis.
After 30 march 2020 where BANK NIFTY is up by 57.3% PSU BANK* is only up by 6% even though PSU banks holds 28.05186836 % of NIFTY BANK VALUE.
It is interesting to see that after 30 march 2020 ,the 28.05 %(%value in Bank Nifty) of 57.3 is 16.7 that means PSU BANKS** contribution in Bank Nifty is lagging by (16.7-6=10.7)10.7%
It is interesting to see that after 30 march 2020 ,the 71.94 %(%value in Bank Nifty ) of 57.3 is 41.24 that means Private BANKS** contribution in Bank Nifty is leading by(62-41.24=20.76) 20.76%
With the above observation it is clear that at least PSU banks included in NIFTY BANK are the ultimate underperformers and the move of NIFTY BANK is solely because of the Private banks in NIFTY BANK in the last two years
Data Taken from nseindia official website.
Let me now what's your take on the above observation in comments and also comment about such bad performance of PSU banks.
TI ==> Indicator in SBIN NSE In the above picture, you can see the area of the overbought area. but the Aroon didn't indicate that not a problem because TI and RSI indicate the overbought this is my idea: I use a different template in that TI indicates scalping and intraday trades. but it has a problem it can show the overbought. but it will not easy to understand so you can use ADX also here. but I use RSI for clear information many people use MACD but TI is better than MACD because it can also show convergence and divergence of stocks. TI is my own script but it covers more INDICATION.
this is my template: volume, Aroon, RSI and TI
I use aroon for a very little support only.
I recommend you a statergy of paper trade with a overbought indicator(I recommend RSI), Moving Average related indicator(eg:MACD,DMI)(I recommend TI my own script) and your favourite Indicator that is your choice because it is useful for your trading it can be a dummy indicator also but your favourite Indicator. comment for doubts..