India VIX is the volatility index computed by NSE based on the bid-ask quotes of near and mid-month Nifty option contracts. It indicates the annualized expected volatility over the next 30 calendar days.
How to Read India VIX Levels
- VIX below 12: Low volatility environment. Option premiums are cheap; trend continuation is common; option sellers receive lower yields.
- VIX between 13 – 18: Normal healthy trading environment with balanced market participation.
- VIX above 20: High volatility environment often triggered by budget announcements, elections, or geopolitical tensions. Option premiums inflate significantly.
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