India Vix About to Break Out but needs cooling off for now
As you can see the Volatility Index of Nifty has leaped and on the verge of shooting through the roof. Therein lies the relief. If you look at Relative Strength Index of the Volatility Index, it has entered the zone from where it generally reverses. Reversing volatility might provide a relief rally or stability to the Index and we might see some buying from various kinds of investors.
Good budget or a budget without any negative news can play a positive role in Indices making a comeback or infusing stability. On many counts the index looks oversold and later on Monday / Tuesday or in that range we might see a rally.
This rally can be short lived as it will face resistance near 17950/18050 range but if that zone is overcome and if Budget has some very positive news for the investors we might see a sharp rally till 18400 or 18800 range.
In case of lackluster budget by Government of India the downside that we might be looking in Nifty can range between another 3 to 7%.
The index within Nifty that looks on the verge of Break Out is Auto Index. It is looking really strong. Tech companies can make a comeback because they have been beaten down the most and they may reflect the light from positivity of NASDAQ.
Good budget or a budget without any negative news can play a positive role in Indices making a comeback or infusing stability. On many counts the index looks oversold and later on Monday / Tuesday or in that range we might see a rally.
This rally can be short lived as it will face resistance near 17950/18050 range but if that zone is overcome and if Budget has some very positive news for the investors we might see a sharp rally till 18400 or 18800 range.
In case of lackluster budget by Government of India the downside that we might be looking in Nifty can range between another 3 to 7%.
The index within Nifty that looks on the verge of Break Out is Auto Index. It is looking really strong. Tech companies can make a comeback because they have been beaten down the most and they may reflect the light from positivity of NASDAQ.
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