What VIX measures
NSE calculates India VIX from the prices of near-month and next-month NIFTY options. It shows the expected volatility of NIFTY over the next 30 days, expressed per year. It is often called the "fear index" because it tends to jump when the market falls sharply.
Turning VIX into a range
Divide VIX by √12 (about 3.46) for a rough one-month move. VIX 15 → about ±4.3% over the next month. Divide by √365 (about 19.1) for a rough one-day move: VIX 15 → about ±0.8% a day.
Typical levels
- Low (around 10–13) — calm markets, cheaper options.
- Middle (around 13–20) — normal conditions.
- High (above 20–25) — nervous markets and expensive options; usually seen during sharp falls or big events.
VIX describes expected size of moves, not direction. A high VIX does not mean the market must fall, only that bigger moves are being priced. See also implied volatility.