Jun 132010

Here is the chart of India VIX. A reverse head and shoulder seems to be under construction.

What is important to note here is that the pattern formation is taking place after a very low reading on the VIX (read complacency). Once the reading crosses the neckline (35-36 level) a lot more volatility may be on the cards. A chart to keep tabs on.

  4 Responses to “Nifty – calm before the storm?”

  1. Dear Sir, I have shortlisted a few stocks (including nifty) at around 5000 level. Please suggest if I shall hold this position. I can hold this for upto 2 weeks. Or shall I quit this booking a loss ?

    Appreciate your time and response.

    Thank you.


  2. Are we talking about a new high on the nifty?

    • When Vix rises it would mean more downsides. Though I anticipated a min 5500 until April, I had dropped that view since April 28th prefered to go to cash. IHS im spelling out here would be complete only after India VIX crosses 35. SO, it still could go either way though my anticipation is a break to the downside. This rise can stop right at today’s or just under 5300. Will post something on Nifty today

  3. Right…got it…thnx…:)

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