nifty and india vix

#1
hello to all ,

india vix is an indicator which is inversely related to nifty .

currently it is around 16 .

vix means volatility ,

since it is in over sold territory in rsi ,macd etc this will rise and which means nifty might fall .

your views are welcome

thnx

sumit bhatia
 

comm4300

Well-Known Member
#3
Summit, there is no such correlation. Vix is for volatility ... It can be high or low basis people's perception of the mkt condition...
disagree. VIX and INDEX are negatively correlated. VIX is often called the fear index. Low VIX implies that there is complacency in the market.

DO a google search on low vix and you'll find a ton of information/studies about correlation.
 
#4
disagree. VIX and INDEX are negatively correlated. VIX is often called the fear index. Low VIX implies that there is complacency in the market.

DO a google search on low vix and you'll find a ton of information/studies about correlation.
Hello Comm, you mean low Vix guarantees sell off. Not really, it shows that people are complacent but doesn't guarantee anything. We have been in low Vix zone for over 1.5 months now and are making new highs. Low Vix will be preceded with higher volatility but the direction still can be up. Once we reach intermediate Vix zone the trend becomes real tricky. See out July to Aug Vix, it will clear why I said there is no correlation. :)
 
#5
Hello Comm, you mean low Vix guarantees sell off. Not really, it shows that people are complacent but doesn't guarantee anything. We have been in low Vix zone for over 1.5 months now and are making new highs. Low Vix will be preceded with higher volatility but the direction still can be up. Once we reach intermediate Vix zone the trend becomes real tricky. See out July to Aug Vix, it will clear why I said there is no correlation. :)
hello ,

low vix does not mean sell off it means being in oversold zone cant stay for long and if it rises nifty will have a sell off .
remember markets alternate between periods of high and low volatility ,

thnx

sumit