Trading around the crucial resistance zone of 16.50 to 17, a decisive close above this range can trigger a sharp rally in VIX. Above these levels, VIX could test 19.50-20 and 22.75-23 levels on the higher side.
The nifty has a crucial support of the 50 DMA level of 22,300 and a decisive close below the 22,300 level the nifty can slide further to the 22,000 and 21,800 levels.
At noon, Nifty was seen struggling to hold 22,500 levels. A break of 22,350 on the downside can trigger a further fall of 300-400 points on the index, says an expert.