Alert – India VIX trading at 37 levels and ATM Vols at 38-40 – Buy staggered at 4720-4820 and 4550 worst case.

Update sent to clients at 4820-4830

Please find attached a chart on INDIA VIX which clearly suggests extreme panic.

- > The last two three times INDIA VIX was above 32 was on 09/08/2011 – Nifty was 4950-500 it bounced to 5195 and next on 26/08/2011 it traded at 32 – Nifty was at 4720-4750 it bounce back to 5150 +. Next on 13/09/2011 Nifty was at 4920 it bounced back to 5150 in next few sessions.

- >So panic is at high watch if there is a sharp correction one can look for stock specific buying in a staggered manner . Nifty support points 4820-4720 ideal and in extreme panics at 4550-4480. Resistance 5050/5150. Generally we have seen very sharp bounces to the tune of 6-10 % from such panics.

- > Only time Index has traded above 38-40 vols has been in 2008 Lehmann collapse period.

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Happy Investing ,

 

Nooresh

3 Comments

  1. arun.s. sutar
    September 26, 2011

    Respected Sir,

    i want to know where the indiavix can be watched live. please let me know the site of either NSE or BSE or anyof the sites where i can watch this indiavix daily \.

    please do the needful.

    arun sutar 9764560077
    arunanisha6@yahoo.co.in

    Reply
    1. nooresh
      September 27, 2011

      Hi Arun,

      You can check on nseindia.com indices statistics.

      Reply
  2. Firebolt
    September 29, 2011

    A research that I found at http://www.niftyvix.com says that we should buy Nifty whenever India VIX is high. Do you think it is accurate?

    Reply

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