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. However, the rebound did little to alter the broader technical picture as the index remains within a tight 24,500 to 25,200 range. Analysts are now expecting increased volatility on expiry day, advising investors to keep a close eye on the market for a potential breakout.
The Nifty 50 index has been stuck in a range-bound pattern for some time now, with the 24,500 to 25,200 range acting as a ceiling and floor for the index. Despite several attempts to break above this range, the index has failed to sustain any significant gains, leading to a sense of uncertainty among investors.
In a note to clients, brokerage firm SEBI Research and Analysis (SEBI-RAS) said that the Nifty 50 index is likely to remain range-bound in the near term, with expiry day volatility a key factor to watch. The firm noted that the index has been trading within a narrow range for some time now, and any break above or below this range could lead to significant volatility.
SEBI-RAS analysts also pointed out that the Nifty 50 index has been forming a series of lower highs and lower lows, a bearish technical pattern that suggests the index is in a downtrend. The firm noted that the index has been struggling to sustain any significant gains, and that any failure to break above the 25,200 level could lead to further declines.
Another brokerage firm, Emkay Global Financial Services, also echoed similar sentiments, saying that the Nifty 50 index is likely to remain range-bound in the near term. The firm noted that the index has been trading within a narrow range for some time now, and that any break above or below this range could lead to significant volatility.
Emkay Global Financial Services analysts also pointed out that the Nifty 50 index has been forming a series of lower highs and lower lows, a bearish technical pattern that suggests the index is in a downtrend. The firm noted that the index has been struggling to sustain any significant gains, and that any failure to break above the 25,200 level could lead to further declines.
Despite the uncertainty surrounding the Nifty 50 index, analysts are advising investors to remain cautious and not to get caught up in the excitement of expiry day volatility. SEBI-RAS analysts noted that the index has been trading within a narrow range for some time now, and that any break above or below this range could lead to significant volatility.
Emkay Global Financial Services analysts also echoed similar sentiments, saying that investors should be prepared for increased volatility on expiry day, but should not get caught up in the excitement of the market. The firm noted that the Nifty 50 index has been forming a series of lower highs and lower lows, a bearish technical pattern that suggests the index is in a downtrend.
In conclusion, the Nifty 50 index remains range-bound, with analysts expecting increased volatility on expiry day. Despite the uncertainty surrounding the index, analysts are advising investors to remain cautious and not to get caught up in the excitement of expiry day volatility. The index has been trading within a narrow range for some time now, and any break above or below this range could lead to significant volatility.
