Why traders and investors must question the current low volatility in Indian market

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Synopsis
Some analysts are troubled by the low volatility of the VIX, which they feel is artificial or a technical glitch and is making retail traders optimistic. According to them, if volatility spikes up from here, a lot of new traders and investors, who have entered the market after March 2020, may land in trouble.

On May 24, PR Sundar, an options trader, questioned the marginal upward movement of the VIX index – a measure of volatility in the market. “Irrespective of market movement, India VIX keeps moving higher slowly for the last few days. What market knows something that we do not know?” he tweeted. His tweet garnered 787 likes and 88 comments, wherein all his followers added their own little bit about the movement of the broad market and its