India VIX

How Draconic reads it

India VIX is not a fear gauge and not a directional predictor. It measures the magnitude of expected moves, not their direction. The direct mechanical relationship to premiums is the most practically important thing to understand: when VIX rises, NIFTY option premiums expand proportionally; when VIX collapses, premiums collapse regardless of price behaviour. This relationship is most consequential around scheduled events — budget, RBI policy announcements, election results — where VIX spikes in the days before and collapses immediately after, creating IV crush that erases the premium value of directionally correct positions. Bank Nifty tends to amplify VIX movements because of its concentration in rate-sensitive financials.