How to Arrive at Likely Targets for Nifty in a Year?

Step 1

Look for India Vix or implied volatility. It is the percentage with which the index can move up or down in an year. If Vix is higher means fear is more and thus wild swings can occur. Higher Vix means you will be getting more premium to pocket when you are selling options.

This vix can be used for creating LEAPS in Dec this year for Next Year Dec

Step 2

Say you today sell 19000 Call and Sell 19000 Put and get a combined premium of 3000 means you are hedged till the time Nifty Moves between a range of 15000 and 21000 (why 15000 because Nifty is today at 18000)

Nifty Target

So, 18000-3000=15000

So, 18000+3000=21000

Hope it answers the query that how the targets are to be arrived for the year.

Thus we can safely say that Nifty Target for 2023 will be  between 15000-21000.

Lastly, sometime the premium collected may be less than the India vix percentage and the case is so because Historical VIX is always less than Implied volatility i.e India Vix at a particular day. This means if Vix today is 15% but in actuality, it may only move lower in the year as historical volatility is always less than the implied volatility.

Make money using our daily bank nifty option tips as we tarde less but trade accurately.

For your better understanding, we are providing info related to India Vix and implied volatility in subsequent para 

India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days.

As per investopedia the term implied volatility refers to a metric that captures the market's view of the likelihood of changes in a given security's price. Investors can use implied volatility to project future moves and supply and demand, and often employ it to price options contracts. Implied volatility isn't the same as historical volatility (also known as realized volatility or statistical volatility), which measures past market changes and their actual results.

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