How I Read and Observe India VixHow I Read and Observe India Vix. IndiaVix vs NIFTY50 Market volatility and market direction.
Volatilityindex
india vixvix is trading at nearly historical lows
with election on the way, the only likely way to go for vix is on the north end
How to Use and Read India VixHow to Use and Read India Vix. How it impact the stocks and overall market index.
PostMortem on BankNifty Today & Analysis of 10 APR 2023I am making some changes in the chart layout from today's report. It will be in white background going forward. This is after the feedback I got from the kindle publishing team that images with dark layout will look awkward when made into paperback.
note: I will still continue to use the dark-mode chart for my trading purpose, only for the reports I will be using the white-mode
NSE:BANKNIFTY opened today at 41116, it might look as a gap-up open but when the price action is considered it looks perfectly in line.
The entire market was quite subdued today, the option premium at the lowest when we compare an average Monday. The good-friday holiday might have played its part, but I still think the premiums were restrictive for any option sellers to have made money today.
I waited till 10.45 to find any mis-priced option, the moment I saw the premiums were all dead - I called it a day. I was just waiting on the sidelines just waiting for something to happen.
From 10.10 to 11.35 NSE:BANKNIFTY tested its first support at 40880 but did not break it. The rejection came at 11.40 when a short surge helped it gain 192pts.
The real move came from 12.45 to 14.15, in fact the 5mt candle at 14.15 had a bid dip. In spite of this the options premium hardly felt any threat. I am referring to OTM premiums which captures the threat more evidently.
Now we have the 40880 support broken decently as the close was below that level. The next support 40704 did not break today, below which the bears would have exerted some additional pressure.
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15mts TF does not look bearish yet, NSE:BANKNIFTY might be taking a small break before the bullish continuation.
It could also mean a short term top if the further trades are held below the current levels. Ideally this should be the case wherein the bears get some control on the market & drive up the premiums.
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1hr was in a perfect downward trend till the moves from 27 March 2023 to 06 April 2023 ruined it.
As it stands we have just entered back the top level of the descending channel. Further trades below this channel will give the bears lot of confidence to push down the bank-nifty prices & drive up the options premium.
The implied volatility which is staying so low is causing all the trouble for the option sellers.
VIX spikes 20%Courtesy the collapse of SVB and the fear of contagion that will follow through. FED will pivot. Bonds, Gold and Crypto become the safe haven.
India VIXAs expected it has declined to 50 from its highs. It has very strong support between 47-50. Sustaining below these levels could take it all the way back to 30-20, which in turn would be good for equities as a falling vix gets stability which leads to a calm recovery in terms of both PRICE & TIME, so what is being perceived a quick bear rally could turn out to be a much more stable bounce back attempt. On the other hand, a reversal from here sees resistance near 65 and then a major one at 75. Anything above that would lead to mayhem once again.
