Volatility spiked early this week. India VIX rose from about 3X the levels in late December and early January, to an intraday high of around 35 on March 23. By March 24, it had eased to 24.91.
India VIX hovering near record lows signals muted volatility and supports a gradual market recovery, as traders price in lower uncertainty.
The exact performance of a trade will depend on its set-up, but the key point is that the market has moved against this approach
On Thursday, 1.5 million VIX options were traded, nearly double the average daily volume, signaling heightened market apprehension.
Market interest in the budget has been low since it was an interim one, and it was proved right. Attention will now shift to global events such as the Fed’s interest rate cuts and geopolitics while the next domestic trigger could be elections
The VIX may be a good indicator of what the crowd thinks where the market is headed but crowds can often be wrong. Is there a better trading tool?