India VIX above 27.8 now, what does it mean?

#1

Today market hasn’t move much nifty is trading @ 11725 and is up by only @ 15 points but India VIX is up by more than 2.1 points and trading around 27.8 right now.
so what does it mean?

#2

Market is very nervous before the big event tomorrow, which in turn results in higher volatility.

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#3

yes but nifty hasn’t move much today but India VIX is moving fast.

#4

Vix has no relation to movement of Nifty, it is an index which gauges fear among market participants based on Open interests building up at respective strike rates

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#5

Nifty vix is derived from bid and ask price of option contracts not a measure of nifty movement as per nse link

https://www.nseindia.com/products/content/equities/indices/india_vix.htm

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#6

I don’t think it has to do anything with open interest, moreover open interest at present is very less as compared to that of normal days.

#7

Makes sense.

#8

Guys vix is calculated using the weighted average price of OTM call and put options by a complex math.

So it is the index options ask and bid price related.