Trade Setup for Oct 21: India VIX dips; long build-up seen in 90 stocks ahead of Muhurat session

India’s volatility index (VIX) declined 2.3% to 11.36 ahead of the Diwali Muhurat trading hour, suggesting a positive mood among traders. Market data showed long build-ups in nearly 90 stocks — where both price and open interest rose — signaling bullish sentiment across the derivatives space. Analysts anticipate potential short-covering rallies, though they caution that the one-hour special session may see erratic price swings due to thin liquidity and quick intraday adjustments. Key Nifty support is pegged at 25,700, resistance near 26,000.