Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
The Indian equity market has been experiencing a rollercoaster ride in recent days, with the Nifty 50 index managing to snap a three-day losing streak on Wednesday. Despite the rebound, the broader technical picture of the market remains unchanged, with the index stuck within a tight range of 24,500 to 25,200. As the expiry day approaches, analysts are warning of increased volatility, advising investors to keep a close eye on any potential breakouts.
The Nifty 50 index, which is a widely followed benchmark of the Indian stock market, has been trading within a narrow range for several days now. This lack of direction has led to a decrease in trading volumes, with market participants waiting for a clear breakout to make their next move.
“We are seeing a lot of consolidation in the market, and it’s only a matter of time before we see a breakout,” said Rohan Sharma, a technical analyst at a leading brokerage firm. “The question is, which direction will it break out in?”
Despite the uncertainty, some analysts are predicting increased volatility on the expiry day, which is likely to impact the market sentiment. “The expiry day is always a critical period for the market, and we can expect a lot of activity on that day,” said Kunal Saraogi, founder of Unnati Capital. “We are advising our clients to be cautious and watch for any breakouts or trends that may emerge.”
The Nifty 50 index has been trading within a tight range of 24,500 to 25,200 for several days now, which is a relatively narrow range compared to its historical volatility. This lack of direction has led to a decrease in trading volumes, with market participants waiting for a clear breakout to make their next move.
The Indian rupee has also been experiencing a lot of volatility recently, which is likely to impact the market sentiment. The rupee has been depreciating against the US dollar, which is a negative sign for the market.
The global market is also experiencing a lot of volatility, with the US-China trade tensions continuing to impact the market. The US Federal Reserve has also been cutting interest rates, which is a positive sign for the market.
Despite the uncertainty, some analysts are predicting a positive breakout for the Nifty 50 index in the near future. “We are seeing a lot of positive signs in the market, including the rebound in the Nifty 50 index and the improvement in the rupee against the US dollar,” said Rohan Sharma. “We are advising our clients to be optimistic and look for opportunities to buy.”
In conclusion, the Nifty 50 index is expected to remain rangebound in the near future, with volatility expected on the expiry day. Analysts are advising investors to be cautious and watch for any breakouts or trends that may emerge. Despite the uncertainty, some analysts are predicting a positive breakout for the Nifty 50 index in the near future.
