Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
The Nifty 50 index has been stuck in a tight range of 24,500 to 25,200 for quite some time now, and despite a marginal rebound on Wednesday, analysts do not expect this trend to change anytime soon. The index managed to snap a three-day losing streak, but the rebound was not enough to alter the broader technical picture.
According to analysts, the Nifty 50 index is likely to remain rangebound in the near future, with volatility expected on expiry day. This volatility is likely to be driven by the upcoming derivatives expiry, which is expected to bring high trading volumes and increased activity in the market.
The Nifty 50 index has been trading within a narrow range of 24,500 to 25,200 for several weeks now, and analysts are expecting this trend to continue. The index has been unable to break out of this range, and as a result, trading has been relatively quiet.
However, analysts are warning of increased volatility on expiry day, which is expected to bring high trading volumes and increased activity in the market. This is because many investors will be looking to adjust their positions ahead of the expiry of derivatives contracts, which could lead to increased trading activity and volatility.
One analyst said, “The Nifty 50 index has been stuck in a tight range for some time now, and we do not expect this trend to change anytime soon. The index is likely to remain rangebound in the near future, with volatility expected on expiry day.”
Another analyst added, “The upcoming derivatives expiry is expected to bring high trading volumes and increased activity in the market, which could lead to increased volatility. We are advising investors to be cautious and watch for a breakout in the Nifty 50 index.”
The Nifty 50 index has been trading within a narrow range of 24,500 to 25,200 for several weeks now, and analysts are expecting this trend to continue. The index has been unable to break out of this range, and as a result, trading has been relatively quiet.
Despite the lack of movement in the Nifty 50 index, there are still opportunities for investors to make profits. For example, investors can look to buy calls or puts on the Nifty 50 index, which can provide a higher return than buying the index itself.
However, investors should be aware that trading in the Nifty 50 index can be volatile, and there is always a risk of losing money. As a result, it is important to do your own research and make informed investment decisions.
In conclusion, the Nifty 50 index is likely to remain rangebound in the near future, with volatility expected on expiry day. Analysts are advising investors to be cautious and watch for a breakout in the Nifty 50 index. Despite the lack of movement in the Nifty 50 index, there are still opportunities for investors to make profits, but investors should be aware of the risks involved.
