Volatility in market and Volatility Index

Volatility Indicates harvesting away of liquidity from the stock markets, leading to a bear market. VOLATILE the term means TO EVAPORATE or gone away. So any market where obvious taking back of investment happens is a Volatile Stock Market.

Nifty And Volatility Index:
Nifty has introduced a special index to represent it in quantitative manner called as Volatility Index. Principle behind evaluating it is Number Of Retail Investors In The Market. The more the retail investors the more will be the volatility index value.

High Volatility Indicates Disinvestments:
Higher volatility index values above 50 points and strictly continuing above it for some trading sessions indicate short term steep fall in stock markets. Above 60 levels are conscious signals to start disinvestments from stock markets.

Anyhow, volatility is very considerable obligate factor effecting the belief of investors in financial markets, as its ultimate consequence is a bear phase.

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