What is India Vix?

India VIX is a short form for India Volatile Index which tells the volatility and fluctuations in the market that are important to know for all investors. It is also called fear gauge index. The India VIX is commonly used to measure investor confidence in the market.

What does India VIX indicate?

India VIX is a reliable and sound indicator of the market volatility and fluctuations. This informs the intraday traders about the rise and fall in the market volatility. This helps intraday traders and investors to determine the market risks for equities.

How much India VIX is good?

Typically, VIX oscillates between 15 and 35. Any value around or below 15 represents low volatility. Any value higher than 35, which indicate high fluctuations in the market.

Is High VIX bullish or bearish?

Contrarian investors who look for market opportunities by going against conventional thinking, consider a low reading on the India VIX to be a bearish signal. As per him market complacency that may spell bad news ahead. While a high VIX reading is believed by some to be a bullish signal.

Should I buy when India VIX is high or low?

When the India VIX is low, volatility is low. When the India VIX is high, volatility is high. Buying when the VIX is high and selling when it is low is a strategy. This is true if all other factors and indicators remaining same.

How to use India VIX for trading?

VIX Calculation involves both the current month and next month Out of the Money (OTM) options. In the Money (ITM) and At the Money (ATM) options are excluded from VIX calculation. These bid and ask prices of OTM options are considered for calls and puts. The output you get is the VIX.

How to use India VIX Index to predict market?

If the India VIX index moves up, it is likely that the Nifty is falling in price. If the volatility index declines, then the Nifty is likely to be experiencing stability. The India VIX index is thought to predict tops and bottoms in the Nifty. There is even a mantra that states: 'when the India VIX is high, it's time to buy.

Can India VIX predict recession?

Historical data shows that after similar drawdowns, the India VIX level was significantly higher than the current level, indicating lower volatility expectations. The India VIX can be used as an indicator to assess the risk-reward profile of the Nifty, but it cannot predict the future.

What is the best time to sell options?

Even if the stock price remains at the same place, the value of the option can go up if volatility goes up. It is always advisable to be buying options when the volatility is likely to go up and sell options when the volatility is likely to go down.

What is the India VIX Index rule?

According to the rule of 16, if the India VIX index is trading at 16, then the Nifty is estimated to see average daily moves up or down of 1% (because 16/16 = 1). If the India VIX is at 24, the daily moves might be around 1.5%, and at 32, the rule of 16 says the Nifty might see 2% daily moves.

How does India VIX affect Nifty?

The India VIX displays a negative correlation with the NIFTY index as well. When the India VIX decreases, the NIFTY rises, and when the India VIX goes up, typically, the NIFTY drops.

How to calculate Nifty range using VIX?

By identifying the highest and lowest values, and considering the current Nifty price and India Vix for the next 30 days, investors can use the formula: Nifty Range = Nifty Price - (Duration * Vix%) to Nifty Price + (Duration * Vix%) to obtain the range.

How to read VIX?

In general, a VIX reading below 20 suggests a perceived low-risk environment, while a reading above 20 is indicative of a period of higher volatility.

What is India Vix share price?