Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
The Nifty 50 index managed to snap a three-day losing streak on Wednesday, ending marginally higher. While the rebound was a welcome respite for investors, it did little to alter the broader technical picture as the index remains within a tight 24,500 to 25,200 range. Analysts are advising caution, warning of potential volatility on expiry day and advising investors to watch for a breakout.
The Nifty 50 index has been stuck in a range for several weeks now, with investors struggling to find direction. The index has been trading within a narrow band of 24,500 to 25,200, with little movement on either side. This lack of momentum has led to a rise in volatility, as investors become increasingly anxious to see some movement.
Analysts are attributing the rangebound movement to a lack of clear direction from the broader market. “The market is waiting for cues from the global markets and the US Fed’s stance on interest rates,” said Ramesh Seth, a technical analyst at Kotak Securities. “Until then, we are likely to see a lot of volatility.”
The expiry day is expected to be particularly volatile, as investors look to unwind their positions ahead of the weekend. “Expiry day is always a high-volatility day, as investors try to square off their positions,” said Jay Mehr, a derivatives analyst at ICICI Securities. “We expect to see a lot of movement on Friday, and investors should be prepared for some wild swings.”
Despite the expected volatility, analysts are advising investors to remain cautious and not to get caught up in the excitement of the expiry day. “It’s easy to get caught up in the hype of the expiry day, but investors should remember that the market is still in a range,” said Seth. “We should be looking for a breakout from this range rather than trying to trade the volatility.”
The Nifty 50 index has been trading within a range of 24,500 to 25,200 for several weeks now, with little movement on either side. This lack of momentum has led to a rise in volatility, as investors become increasingly anxious to see some movement.
Analysts are attributing the rangebound movement to a lack of clear direction from the broader market. “The market is waiting for cues from the global markets and the US Fed’s stance on interest rates,” said Seth. “Until then, we are likely to see a lot of volatility.”
The expiry day is expected to be particularly volatile, as investors look to unwind their positions ahead of the weekend. “Expiry day is always a high-volatility day, as investors try to square off their positions,” said Mehr. “We expect to see a lot of movement on Friday, and investors should be prepared for some wild swings.”
Despite the expected volatility, analysts are advising investors to remain cautious and not to get caught up in the excitement of the expiry day. “It’s easy to get caught up in the hype of the expiry day, but investors should remember that the market is still in a range,” said Seth. “We should be looking for a breakout from this range rather than trying to trade the volatility.”
The Nifty 50 index has been trading within a range of 24,500 to 25,200 for several weeks now, with little movement on either side. This lack of momentum has led to a rise in volatility, as investors become increasingly anxious to see some movement.
Analysts are attributing the rangebound movement to a lack of clear direction from the broader market. “The market is waiting for cues from the global markets and the US Fed’s stance on interest rates,” said Seth. “Until then, we are likely to see a lot of volatility.”
The expiry day is expected to be particularly volatile, as investors look to unwind their positions ahead of the weekend. “Expiry day is always a high-volatility day, as investors try to square off their positions,” said Mehr. “We expect to see a lot of movement on Friday, and investors should be prepared for some wild swings.”
Despite the expected volatility, analysts are advising investors to remain cautious and not to get caught up in the excitement of the expiry day. “It’s easy to get caught up in the hype of the expiry day, but investors should remember that the market is still in a range,” said Seth. “We should be looking for a breakout from this range rather than trying to trade the volatility.”
In conclusion, the Nifty 50 index remains rangebound, with analysts advising caution and warning of potential volatility on expiry day. Investors should be prepared for some wild swings, but should also remember to keep a long-term perspective and not get caught up in the excitement of the expiry day.
