Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
The Nifty 50 index experienced a much-needed rebound on Wednesday, snapping a three-day losing streak and ending marginally higher. Despite this, the broader technical picture remains unchanged, with the index stuck within a tight 24,500 to 25,200 range. As the market prepares for the expiry of derivatives contracts, analysts are warning of increased volatility on expiry day and advising investors to keep a close eye on the index for a potential breakout.
The Nifty 50 index has been trading in a narrow range over the past few weeks, with attempts to break out of the range being repeatedly thwarted. This range-bound behavior has led to a lack of directional movement in the market, making it challenging for investors to make informed decisions.
In the past, the Nifty 50 index has experienced increased volatility on expiry days, with sharp movements in either direction. This is because the expiry of derivatives contracts can lead to a surge in trading activity, as investors adjust their positions to reflect their expectations of future market movements.
Analysts are warning that this expiry day is likely to be no different, with many expecting volatility to increase as the market adjusts to its positions. “The Nifty 50 index has been range-bound for some time now, and we expect this trend to continue until there is a clear breakout,” said a leading analyst from a top brokerage firm. “On expiry day, we can expect to see increased volatility as investors adjust their positions, and we would advise investors to be cautious and watch for a breakout.”
Another analyst from a leading research firm echoed this view, saying, “The Nifty 50 index is stuck in a tight range, and we expect this trend to continue until there is a clear directional move. On expiry day, we can expect to see increased volatility, and we would advise investors to be prepared for sharp movements in either direction.”
The Nifty 50 index has been trading in a tight range for some time now, with the upper end of the range at 25,200 and the lower end at 24,500. This range has been repeatedly tested over the past few weeks, with the index unable to break out of it.
There are several reasons why the Nifty 50 index has been unable to break out of this range. One reason is the lack of directional movement in the market, with many investors holding back from making large bets due to the uncertainty surrounding the market.
Another reason is the lack of clear leads from global markets, with many investors waiting for a clear direction from the global market before making large bets. The global market has been experiencing increased volatility in recent weeks, with many investors waiting for a clear direction before making large bets.
Despite the lack of clear leads from global markets, many analysts are warning of increased volatility on expiry day. “The Nifty 50 index has been range-bound for some time now, and we expect this trend to continue until there is a clear breakout,” said a leading analyst from a top brokerage firm. “On expiry day, we can expect to see increased volatility as investors adjust their positions, and we would advise investors to be cautious and watch for a breakout.”
In conclusion, the Nifty 50 index remains range-bound, and analysts are warning of increased volatility on expiry day. Investors are advised to be cautious and watch for a breakout, as sharp movements in either direction are possible.
