(1)What is India VIX or India Volatile Index?
-India VIX or India Volatility Index is a volatile index that is calculated by the NSE to measure the market’s anticipation for volatility and fluctuations in the near term.
-A lower VIX signifies low volatility and a stable range for the asset price.
-A higher VIX implies high volatility and a lack of confidence among investors to trade in the current market range. Usually, it is an indication of a significant directional movement in the market marked with the broadening of the current range.
-So, if the value of the India VIX index shows a rise, then the expectation of traders should be a high level of volatility. This translates to a considerable shift in the NIFTY index. If the value is low, this indicates a lower expectation of volatility, and that means hardly any change in the NIFTY index itself.
(2) What is Volatility?
-Volatility refers to periods of unpredictability when security prices go through rapid fluctuations. Often people associate volatility with price falls. But it can also happen in an uptrend.
(3) What is the reason behind this surge in INDIAVIX?
- The volatility is caused by Covid-related concerns as coronavirus cases have risen in foreign nations like China and the US and its consequent impact on India.
If we see on the basis of technical it's reacting from the zone which was held perfectly multiple times in past.