When VIX is at all time high, it is time to buy and vice-versa.(why?-indicator has mean reverting tendency)
Some time VIX could go in same direction as market- it means that institutional investor are wrong because of retail irrational behavior like excessive buying or selling. But this is short term phenomenon and also indicate that market will reverse very soon or VIX will go down.
call/put ratio:
max pain:
finding max put & Call OI or distribution of OI of call & put- helps us analyze where market could go during expiry.
Nasdaq and S&P500: if these indexes fall then indian market usually will fall next day.
SGX nifty: helps in determining gap up/gap down.
Europian market: if they open bearish or bullish can also have some impact on indian market around 1:30pm.
FII data: For short term, it determines market direction
DII data: For investors or for long term
You have to identify historically that stocks is following horizontal S/R(support/resistance line) or angled S/R
If stock is in uptrend before news than there is more probability that it will fall. It has different probability for different stocks(fundamentally strong vs weak).
Market dislikes uncertainty more than any good or bad news. That means, if some major uncertainty in the market than market will fall.
Volatility:
Inflation can be good or bad for stocks. Inflation as lone indicator cannot determine the affect on stocks. So, we need to see current country's economic cycle and central bank's policy in response. Whether inflation is momentarily or it is going to stay for a while.
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