Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
On Wednesday, the Nifty 50 index managed to snap a three-day losing streak, ending marginally higher. The rebound, however, did little to alter the broader technical picture as the index remains within a tight 24,500 to 25,200 range. Analysts expect volatility on expiry day and advise watching for a breakout.
The Nifty 50 index has been stuck in a range-bound pattern for quite some time now, with no clear direction or trend emerging. The recent rebound may have brought some relief to investors, but it is essential to remember that this is just a temporary reprieve, and the index is likely to continue trading within its narrow range.
One of the main reasons for the Nifty’s range-bound behavior is the lack of clear direction from global markets. The US Federal Reserve’s decision to keep interest rates unchanged has led to a sense of uncertainty among investors, making it challenging for them to make informed decisions about their investments.
Another factor contributing to the Nifty’s range-bound behavior is the ongoing trade tensions between the US and China. The ongoing trade tensions have led to a sense of uncertainty among investors, making it challenging for them to make informed decisions about their investments.
Despite the Nifty’s range-bound behavior, analysts are expecting volatility on expiry day. The Nifty 50 index is likely to see increased trading activity on expiry day, which could lead to higher volatility. The index is likely to see increased trading activity as investors look to close their positions ahead of the expiry day.
Analysts are advising investors to watch for a breakout on expiry day. A breakout above the 25,200 level could lead to a significant rally in the Nifty 50 index, while a breakdown below the 24,500 level could lead to a significant decline. Investors should be cautious and avoid taking any impulsive decisions based on short-term market fluctuations.
In conclusion, the Nifty 50 index is likely to continue trading within its narrow range, with analysts expecting volatility on expiry day. Investors should be cautious and avoid taking any impulsive decisions based on short-term market fluctuations.
