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India VIX Index

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INDIAVIX trade ideas

INDIAVIX_IS IN UPTREND_BOUNCE FROM FIB LEVELIndia VIX is critical for understanding market choppiness before investing. Since all significant directional market movements are preceded by market choppiness, India VIX plays a crucial role in determining the confidence or fear of the investors. A lower VIX signifies low volatility and a stable range for the asset price. A higher VIX implies high volatility and a lack of confidence among investors to trade in the current market range. Usually, it is an indication of a significant directional movement in the market marked with the broadening of the current range. Volatility and India VIX share a positive correlation, which means when volatility is high, the value of India VIX is also high. For example, in the pre-COVID situation, India VIX was significantly low at below 30 since 2014, indicating stability. But since the outbreak of the pandemic, India VIX value reached 50. During the same period, the equity index lost nearly 40% of its value and traded at the 8000 level. However, a crucial point to remember is that India VIX doesn’t indicate trend direction. It only captures rising or falling volatility factors. Hence, investors with higher exposure to equities keep a close watch on India VIX’s value. There are instances of extreme volatility and periods when the market moved in a tight range. But India VIX has a tendency to fall back to its mean, between 15-35. There can also be a situation when India VIX reaches zero. In this situation, the index can either double or come to zero. Planning trade around VIX VIX measures near term volatility for a period of 30 days. Hence, it uses options with the current month expiry and next month for calculation. It assumes that option premium at the strike price as NIFTY is a reflection of the implied volatility of the overall market. India VIX considers averaging the order book of NIFTY options as a good measure of market volatility. It uses a complex statistical formula, which you don’t need to learn. But you must understand what it implies to plan trades. For day traders, India VIX offers a good measure of market risk. It gives traders an idea of when stock prices go up or down when market volatility changes. For example, when the VIX value rises, intraday traders run the risk of triggering their stop loss level. Accordingly, they can reduce their leverage or increase stop loss. Long term investors don’t bother about short term volatility, but in the long run, rising India VIX gives a fair measure of increasing uncertainties when institutional investors can raise their hedge by going heavy on put options to play the market. Options traders depend heavily on the volatility metrics for buy and sell decisions. For instance, when volatility rises, options become more valuable and rewarding for buyers. Conversely, in times of low volatility, options tend to lose their value as they reach the expiry. There are few ways to trade volatility. Traders can buy straddles or strangles when market volatility rises. But this trading strategy is expensive. Hence, as an alternative, one can go heavy on futures on the VIX index without worrying about market direction. India VIX and NIFTY share a negative correlation. When plotted on a timeline of nine years since the inception of VIX, NIFTY reflected an opposite movement. Hence, when the VIX value is low, NIFTY rises and vis-a-vis. It gives investors a fair idea of market behaviour. When India VIX value peaks, portfolio and mutual fund managers increase their exposure in high Beta portfolios. Similarly, they would select low Beta stocks when the VIX value is low. India VIX is critical for options writers. High VIX value presents options writers with an opportunity of unlimited risk and limited rewards (premium). As the market passes through a phase of high volatility, out of money options contracts can turn into an at the money or even in the money contracts in a matter of few trading sessions. Conclusion India VIX is a volatility index to measure the market’s expectation of volatility. It is a powerful tool to gauge the expected price movement of stocks. Historically, high VIX values were followed by a significant shift in share price and indices. It also plays a critical role in determining derivative contract prices and premiums. Now that you have learned about India VIX meaning go ahead trade with confidence.
NSE:INDIAVIXLong
by Pranay_Kamdi
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 Like & Follow for more Educational Posts ✍️
NSE:INDIAVIXEducation
by Himanu_HATradeTalk1
India VIX_If Sustain Above 20 Range&_Probably More VolatilityVIX and volatility move in the opposite direction. A higher VIX indicates higher volatility in the market, vis-a-vis a lower VIX, which means low volatility in NIFTY. Let’s understand with an example. Suppose, VIX value is 15. It means investors expect prices to fluctuate in the range of +15 and -15 in the next thirty days. Theoretically, VIX oscillates between 15 and 35. Any value around or below 15 represents low volatility against values higher than 35, which indicate high fluctuations in the market. In the past, NIFTY and VIX had shared a negative relationship, meaning NIFTY rose each time VIX was below 15. India VIX in the stock market represents whether investors are feeling fearful or complacent in the short term, an indication of market choppiness.
NSE:INDIAVIX
by Pranay_Kamdi
Q&A_ Is market waiting for a deep correction? My view.Definition: India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. Here you can see the weekly chart of India Vix. You must have noticed that whenever the Vix touches 10% levels, it bounces off. This has been happening since 2014. So, Vix generally means "expected market volatility (or say movement) over the next 30 calendar days". Nifty is wandering around 16000 levels and 15500 levels since June. It means buyers are not interested to buy. They must be booking the profits. So, if the market has to move up, then "Vix must fall below 10% levels". But "we have a very strong support at 10% levels". Of course it may go little below 10% levels (like it did on 19 Jun 2017 to 8.75%). But the point here is if the market has to move up, then Vix must fall. Hence I am expecting a deep correction. This is not supported on charts only, but as well as fundamentals aspects (like Nifty moving above 28 PE), share prices are really expensive, euphoria, new trading accounts opened and enjoying the bull market, etc. Exception: The strong bullishness in S&P 500 (or say US markets), can easily affect the Indian markets. If there is "euphoria" on US markets, it's everywhere. Hence Nifty can move even higher. Conclusion: I am not saying to just go short (or sell off your shares), if you're an trader, good. But if you are an investor, just think and analyze more. Of course there are stocks that are undervalued, you can invest a little there. But, the blue-chip stocks, I won't advice it for investing now. You get best prices when "there is fear, there is an uncertainty, there's a panic". Always saving your money for that time (for investing) is crucial. Disclaimer: The information and analysis I've provided is of my own, please do your thorough analysis and/or consult your financial advisor before investing. The investing in securities markets are subject to market risks. I am not a SEBI registered investment advisor. Thankyou for reading and I wish you a happy investing.
NSE:INDIAVIXShort
by UnknownUnicorn7637383
1
INDIA VIX ✓ Targeting 21,30 ???NSE:INDIAVIX CMP: 14.58 Strong WEEKLY Support Targeting to 21,30 ??? #Study, Learn & Earn. If you love this post please like and comment your thoughts below. That will be a great motivation for me to post similar ideas ahead. Disclaimer: All the information posting on this page are for the educational purpose only, we are not SEBI registered financial advisor. We wont recommend any BUY/SELL of stocks. Contact your financial advisor before taking any action
NSE:INDIAVIXLong
by Art_of_charting_Knowledge
INDIA vix could jump to 19 from current areas of 12.5 support 9-9.50 volatility The India VIX value at the last plotted point is around 15.15, with a slight increase shown by a small green candlestick. This value is relatively low compared to historical peaks, implying that investors are currently expecting lower volatility, which could be interpreted as a stable market environment. However, it's important to note that the VIX is a forward-looking tool and can change rapidly with shifts in market sentiment. Investors and traders use such charts to assess potential risk when making decisions about portfolio allocation, hedging strategies, and when to enter or exit the market. The India VIX, in particular, is an essential tool for those looking to understand sentiment in the Indian equity markets.
NSE:INDIAVIX
by pratik2358
Q&A_ How to read India VIX and what does it actually mean?Namaste! India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. In simple words, it tells us the % market is expecting Nifty to move (whether up or down) in the upcoming 30 calendar days. India VIX chart analysis:- You must have noticed that each time VIX touch 10-11% levels, it bounces off. Did you ever think what is the annual average return of Nifty 50? Well, it's around 12%. Don't forget, Nifty also has yearly dividend yield of around 1%, so the total becomes:- India VIX support = 11% Dividend yield of Nifty = 1%, total 12%. I agree, the upper statement sounds non-sense, but in simple terms, it feels logical to me. VIX has to come down, for the Nifty to go up. In other words, we should be ready for a correction in Nifty, until the VIX touches 11% levels. India VIX goes in the opposite direction than Nifty 50. Why? Because, the long term trend of the Nifty is up. Hence, VIX will only rise, when there is a shift (expectation) to the downside. Nifty50 chart analysis:- 1. Nifty has hit the strong weekly trendline resistance, this is the 4th time. I am expecting at least 1 more corrective rally on the downside, which makes it a 5 time resistance. The 5 number is based on the recent history of Nifty 50. Since 2016 to 2020, there were 5 supports, and 5 resistance in the same period. 2. ADX (Average Direction Index) is hovering around 22 points and sloping downwards. It generally means, the market isn't liking the short term uptrend, if it could, then ADX must rise. Q: When the next correction starts, will all the stocks in the Nifty 50 fall? A: No, but a small yes. All stocks will correct, but the overvalued will correct more. Q: Should I wait for the correction to invest in? A: Nope. You should start investing now, because many stocks in the Nifty 50 has been become undervalued due to this correction (like the IT sector except TCS). Choose them wisely. I don't recommend investing in more than 10 companies of the Nifty 50. Obviously, you should not concentrate your portfolio in any of the sectors, but diverse in the companies and sectors whose business you understand. Disclaimer: The analysis I have shared is based on my understanding and experience in the markets. Investment does not guarantee a fixed return due to volatile nature of markets and may result in a loss. Please do your analysis and/or consult your financial advisor before investing.
NSE:INDIAVIX
by UnknownUnicorn7637383