Nifty's HV of 10 days went below 10 and then rebounded. The HV (10 days) has been a good indicator for reversal from the top.
As can be seen the index reversed from the Jan top when HV (10) made a low below 10.
The HV (10) made 52 week low in July but the index did not fell sharply instead stayed in range abd broke out later.
This time the HV (10) moves below 10 with index also at trendline resistance. Nifty has surely seen given up 3% from the top as of now.
Analysing the HV of 30 days for Nifty though tells a different picture.
The chart shows HV(30) and IV's in a uprising channel which we discussed earlier also. Nifty IV moving higher. The difference of HV (30) and IV is less than 1 indicating mean values for them as IV seems to be optimally priced in.
The Nifty IV from last 2 weeks are consistently below 20 levels which on break of 20 can lead to one more burst higher.
As of now the options and IV's indicate more of range trading. For any breakout trades based on HV and IV one could watch the HV (10) cross of 15 and IV's move above 22 can be bearish for markets.
Related Posts.
As can be seen the index reversed from the Jan top when HV (10) made a low below 10.
The HV (10) made 52 week low in July but the index did not fell sharply instead stayed in range abd broke out later.
This time the HV (10) moves below 10 with index also at trendline resistance. Nifty has surely seen given up 3% from the top as of now.
Analysing the HV of 30 days for Nifty though tells a different picture.
The chart shows HV(30) and IV's in a uprising channel which we discussed earlier also. Nifty IV moving higher. The difference of HV (30) and IV is less than 1 indicating mean values for them as IV seems to be optimally priced in.
The Nifty IV from last 2 weeks are consistently below 20 levels which on break of 20 can lead to one more burst higher.
As of now the options and IV's indicate more of range trading. For any breakout trades based on HV and IV one could watch the HV (10) cross of 15 and IV's move above 22 can be bearish for markets.
Related Posts.
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