The India VIX, often referred to as the 'fear index,' has increased over 70% since its April 23rd low of 10, following historical trends that show the VIX typically rises before major events like general elections. It was noted that in 2019, the VIX jumped 150% and in 2014, it spiked 212%. Analysts predict a further increase towards 25 before the election results, driven by portfolio investors buying protective put options and traders speculating on significant price movements. Market behavior is currently mirroring the pre-election period of 2019, with important support levels at 22300, 22000, and 21700 on the Nifty, and a breakout above 22800 is seen as necessary for an upward trend to be established.
