Market volatility reflects the risk and uncertainty. Low volatility means steadier market swings, while high volatility means faster and bigger price changes.
– VIX helps to determine whether market volatility is increasing or decreasing. – VIX assist in analyzing the market sentiment – VIX helps to manage risk and potential losses.
High India VIX (Above 20-25): This signals high anxiety and uncertainty among investors, indicating expected major price swings soon. Moderate India VIX (15-20): Shows average volatility expectations, suggesting moderate market conditions. Low India VIX (below 15) reflects stability and high market confidence, with less anticipation of sudden events or sharp swings.
The India VIX and market sentiment typically have an inverse relationship.