VIX signalling any correction could be steep; Nifty continues to ride up

The Nifty continues to ride up, driven by the usual pre-Budget optimism. All three segments of players - domestic institutions, retail investors/ traders and foreign portfolio investors (FPIs) appear to be bullish at the moment. However, option premiums have also spiked, and the VIX is up, indicating that there could be massive volatility in the next few sessions.

The long trend is obviously bullish but centred on Budget newsflow. It's impossible to calculate upside targets since the market is in a new zone. The VIX is signalling that any correction could be significant since it's risen to 12-month highs. However, a