Indian VIX at ALL TIME LOW !!!!!

NIFTY remained steady today and more of scrip specific moves were seen today. Even the the Index rose, the advance to decline ratio was negative... Concentrate on select Mid Cap stocks (yes we discussed mostly midcaps in our ITG Group and most have given moves in last two days)

I presume not many people follow the Volatility Index. Yes - India too has its own VIX and the NSE calculates the VIX daily from the prevailing index options rates.



The world over, the VIX is presumed to be a contrarian indicator. Peaks in the VIX have coincided with market bottoms (except event based moves) . It logically follows that market highs may have a relation to VIX lows...

The Nifty VIX has hit its all time low yesterday (Mar 17) (data started since Nov 07) and that could be a sign of caution to the bulls... But midcaps may continue to outperform as the VIX is computed on Nifty index options and so non-index stocks may still have steam left.

As for stock specific moves, IDEA seems to be giving strong move ( I analysed it on 2nd March .. Watch Bharti and DLF in coming days !

As for Nifty - keep an eye on 5205... !

Happy Trading !

CA Rajiv D Khatlawala
ValueTrade Academy
www.investogyan.com