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Indian Markets Under Pressure: VIX Surges
8 Sep
Summary
- Nifty faces downward pressure, with support near 23,600.
- India VIX, a fear gauge, surged by 4.5% to 11.16.
- Foreign and domestic investors were net buyers on Monday.
Indian benchmark indices faced persistent selling pressure throughout the session, causing them to open flat and remain subdued. Analysts indicate that the Nifty's immediate outlook is bearish, with a potential decline towards the support area of 23,600-23,500 if it sustains below 24,025. This crucial support zone aligns with a previous major gap and the July 2026 low.
The momentum indicator RSI is descending further into the bearish territory, confirming weak market sentiment. In the short term, this weakness is expected to persist, with the index possibly moving towards 23,700 or 23,620. Resistance on the upside is seen at the 23,900 level. The India VIX, a key measure of market fear, saw a substantial rise of 4.5%, settling at 11.16.
In terms of investor activity on Monday, foreign portfolio investors were net buyers of shares worth Rs 280 crore. Domestic institutional investors also showed positive activity, being net buyers at Rs 567 crore. Concurrently, the Indian rupee traded within a narrow range, influenced by the Reserve Bank of India's intervention efforts and concerns over rising oil prices stemming from geopolitical events.
