What it is
India VIX is NSE's estimate of the annualised volatility of NIFTY over the next 30 days, computed from NIFTY option prices. A VIX of 15 implies the market expects NIFTY to move within about ±15% over a year, or roughly ±4.3% over a month (15 ÷ √12).
Typical ranges
| VIX | Mood |
|---|---|
| Below 12 | Calm, complacent — options cheap |
| 12–18 | Normal |
| 18–25 | Nervous — options expensive |
| Above 25 | Fear / crisis (2008, 2020 spikes went above 80) |
How traders use it
- VIX usually rises when NIFTY falls — it's an inverse gauge.
- Option sellers prefer higher VIX (richer premiums); buyers prefer low VIX.
- Very low VIX near tops and spikes near bottoms make it a useful contrarian signal over weeks.