What happens when Nifty falls on Friday with Very High VIX?

I found this very interesting thread on twitter which explains about what follows generally (for next 30 days) after a fall on friday with extremely high VIX.

  • Only 7 times in last 11 years, India VIX moved more than 15% on Fridays and only 2 times Vix dropped on following Monday, rest all the time Vix increased on Monday as well.

  • After Friday’s Vix big move, What happens after 30 days, all 7 times the Vix went up much higher in next 30 days. So this Friday’s fall could be start of the next big volatile sessions in the coming weeks

Source : Kirubakaran Rajendran’s Twitter post

My Inference from this data : Whenever there has been a huge fall with high VIX, the coming month tends to be highly volatile in most if not all the cases. So, let us brace ourselves for the upcoming high volatility in the coming month and plan our trades and investments accordingly

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