India VIX shows a divergence
18 Mar 2021 ● 06:11 AM
When the market continued higher between December to January and February which would have meant that the India VIX goes lower and lower. That did not happen immediately. In fact at the highs we may say that there was a negative divergence between the nifty and the India VIX. In the last few days as the nifty is actually starting to show some weakness the India VIX has started to decline though it has still not made a lower low than what it made in December at 14.05. So the divergence has not ended but the decline in the VIX recently does come as a surprise as it does not support the fear of a market correction. 1 of the 2 is going to be wrong.