What does the India VIX indicate after a 70% jump in eight sessions?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The India Volatility Index or India VIX hit a 52-week high on Monday, jumping as much as 15%. This was also the biggest single-day surge for the volatility index since March 2023. The VIX also rose for the eighth day in a row on Monday.

The volatility index had declined to an intraday low of 9.85 on April 23. Since then, the index has surged eight days in a row to hit a 52-week high of 16.95 on Monday. The VIX gained as much as 16% on Monday.

India VIX is a volatility index calculated by the National Stock Exchange to measure the market’s anticipation for volatility and fluctuations in the near-term.

Generally VIX levels in excess of 30 are considered to signal heightened volatility from increased uncertainty, risk and investor fear. Levels below 20, however, correspond to more stable, less stressful periods.

However, over the last few sessions, the VIX has seen double digit gains twice.

After the surge over the last eight sessions, the India VIX is now trading above all of its key moving averages.

From oversold zones on April 23, the India VIX is now in overbought territory on the charts. Its Relative Strength Index stood at 71. An RSI reading above 70 indicates that the stock is in overbought territory.

The Indian markets have been very choppy on Monday. The Nifty has traded in a 200-point range and is set to close nearly 150 points off the day’s high with minor losses. Every small recovery on the index on Monday has been sold into. The underperformance has come from the broader markets, with the smallcap index declining by over 1%.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow