Saturday, May 29, 2010

Volatility - A chart Check

6 comments:

Anuj said...

Thanks Sudarshan ji, for the chart
That's a great piece of information/advice for long term investor.Another post that should be saved.Cheers

Ishwinder Singh said...

Global markets are edgy as is evident from the choppy movements in the European markets on Friday. The 1% + drop in the US markets post the Fitch downgrade of Spain confirms the same. I feel that the current rally should be used to exit long positions. The 4700-4800 bottom is likely to be retested soon and could break. Whenever, people go in with high expectations they inevitably get disappointed. Market people have high expectations from the coming Friday's employment report in the US. Could this be the game changer?

Tarique Anwar said...

a very similar study i did few weeks back..

http://technically--speaking.blogspot.com/2010/05/nifty-volatility-to-expand.html

nagu said...

can any body explain why thare is huge discount on nifty futeres ?

men said...

Some stocks like itc n maybe lupin continue to make new all time highs while the nifty flirts with the 200 dma so what is to be done to those stocks any guidance?

K_Vir said...

Hello. Thanks for very valuable guidance on important TA topics.

I interpret this chart as suggesting that market has not bottome out yet and hence probability of reaching lower values is muuch higher than reaching higher at this point. Thi smovement shall be accompanied by higher volatiliy, thus making intra-day / overnight trading quite risky.

At such low volatility, options shall be cheaper. Will it be a good idea to buy put options to protect investment portofolio ? (One of the discussion on CNBC suggested thi strategy). Your views please.