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?
Market is very nervous before the big event tomorrow, which in turn results in higher volatility.
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yes but nifty hasn’t move much today but India VIX is moving fast.
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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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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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.
Makes sense.
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.