In the previous technical note, we had expressed concerns over the Nifty and VIX rising in the same direction simultaneously. As mentioned earlier, in such circumstances, the VIX often ends up acting as a lead indicator and a precursor to an impending corrective move. The previous week had seen VIX spiking up by 33.80%. This week as well, over the past five sessions, the VIX has surged another 26.37% to 18.47. However, the markets, much on the anticipated lines, wore a corrective look and ended the week on a negative note. The trading range also stayed wider as the Nifty oscillated in a 656-point range; it ended with a net weekly loss of 420.65 points (-1.87%).
