Thursday, January 30, 2014

India VIX

India VIX

Below chart is of India VIX.

VIX was trading in very narrow range for most of the time in January. Nifty options buyers would not have seen much profits as time would have eaten up the premiums they paid up. Now VIX came out of the narrow range trading. However it is resisted by a trend line where VIX faced resistance twice in 5 months. Nifty also made first swing low after 5 months. From last 5 months, Nifty is making Higher Lows. First time we Nifty made a Swing low after 5 months.

If at all Nifty break out of this trend line, we will be seeing huge volatility in markets.When there is a volatility in markets, it is good to trade in options.Watch VIX carefully and up on breaking out of this range, use option strategies to gain more out of this awaiting volatility.

Good Luck !
Happy Trading !

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