India VIX explained in plain English

India VIX is a volatility index computed by the NSE from the prices traders are paying for Nifty 50 options. When traders expect big price swings -- up or down -- they pay more for options that protect them, and VIX rises. When the market feels calm, VIX tends to sit low. VIX does not say which direction the market will move, only how much movement is expected.

As a rough guide, India VIX has historically spent much of its time between 11 and 18. Readings above 20 often coincide with sharp selloffs or major news events (elections, global shocks, interest-rate surprises). Readings below 11 usually accompany calm, steadily rising markets. VIX is one of the six inputs to the Equilytics Mood Index, where a rising VIX pulls the score toward Fear.