An evening walk down Dalal St.: India VIX near 4-year high; monsoon to be key trigger ahead

After a strong bullish candle seen on Tuesday, traders were hoping for a stable Wednesday. However, bears soon took control in the last hour of the trading session and pushed Nifty below crucial support levels.

Trade tensions, profit booking at higher levels, mixed results from India Inc., delay in monsoon as well as growing uncertainty around election outcome on May 23 are keeping traders on the edge.

The monsoon will hit Kerala on June 6, five days after its normal onset date, the India Meteorological Department (IMD) said on May 15.

Bulls failed to retain control on D-Street as bears made a comeback and pushed the index towards 100-day moving average placed at 11,134 by making a large bearish candle on the charts.

The index witnessed a selling pressure near its 5-day exponential moving average (EMA) and 100-day EMA. The fall in the index was led by metals, telecom, power and auto stocks.

India VIX, the fear gauge of the index rose 5.4 percent to 28.61 that is near a 4-year high, CNBC-TV18 said. The index has already risen about 80 percent so far in 2019.