The Indian Stock Market Volatility Index is commonly known as India VIX, It is a important indicator that measures the market’s expectation of volatility in near term. It is often referred to as the “fear gauge,” India VIX provides insights into investor sentiment and potential market conditions.
India VIX is calculated on the implied volatility of Nifty 50 index options (weekly and monthly). It reflects the expected market volatility for the current month. A higher India VIX indicates that there is greater uncertainty or fear in the market, while a lower India Vix suggests stability and confidence.
India VIX is calculated using the Black-Scholes model, It actors the implied volatility of Nifty 50 index option contracts with near-term (weekly and monthly) expiry.
Higher the India Vix, Higher the uncertainty in the market. Lower means there is no fear in the market
No, India VIX measures volatility and not the direction of Nifty 50 Indezx. It shows the level of fear or confidence among investors. It has nothing to do with market direction.
No, as of now India vix can not be traded on any exchange.
You can access historical data on the NSE website, optionbacktesting.in, freebacktesting.in, financial research platforms, or data aggregators like Bloomberg and Reuters
Retail investors or traders can use India VIX to understand market sentiment and manage their risk more effectively, particularly during volatile period. it helps them to take calculated risk.
You can also use it for Option Backtesting
India VIX has played a pivotal role during major global and domestic events. Below are key trends observed over the years:
Analyzing India Vix historical data reveals some patterns in market behavior during periods of economic stress or optimism.
India VIX is a valuable tool for traders for understanding market sentiment and anticipating potential risk and down trends. By studying India Vix historical data, |Traders and Investors can gain insights into market behavior during various economic cycles and improve their trading strategies and become profitable. Whether you are a seasoned investor or a beginner, keeping an eye on India VIX it can enhance your market analysis.