Despite not being like your average widely traded security, India VIX
can be invaluable in providing info on the broad market movements along with option pricing. It is known that with an increase in VIX
, one can expect an increase in ATR ( Average True Range
). This is a double-edged sword because, on one hand, a higher ATR indicates a higher potential move (especially for intraday) but on the other hand it means that the prices will be choppy and as a result your stop-loss might have to be wider.
It is also quite interesting to see how this index is also respecting the Fibonacci (23.6%) levels so far.