Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
The Indian equity market has been stuck in a tight range for quite some time now, with the Nifty 50 index struggling to break out of the 24,500 to 25,200 barrier. Despite the recent rebound on Wednesday, analysts are expecting volatility on expiry day and advising investors to be cautious and watch for a breakout.
On Wednesday, the Nifty 50 index managed to snap a three-day losing streak, ending marginally higher. However, the rebound was not enough to alter the broader technical picture, as the index remains within a tight range. The 50-stock index has been hovering around the 25,000 mark for the past few weeks, with many analysts attributing the range-bound movement to a lack of fresh triggers.
One of the main reasons for the range-bound movement is the lack of clarity on the global economic front. The ongoing trade tensions between the US and China have created uncertainty, leading investors to adopt a cautious approach. The slowdown in the global economy has also led to a decline in corporate earnings, further adding to the uncertainty.
Another factor that is contributing to the range-bound movement is the lack of fresh triggers in the Indian economy. The government’s budget for the next fiscal year is expected to be announced soon, and investors are waiting with bated breath for any major announcements. The budget is expected to provide a boost to the economy, but until then, investors are likely to remain cautious.
Analysts are expecting volatility on expiry day, as the Nifty 50 index is likely to see a lot of activity. Expiry day is the day when futures contracts expire, and it is often marked by high trading volumes and volatility. The Nifty 50 index is likely to see a lot of buying and selling activity, which could lead to increased volatility.
In fact, according to a report by SEBI RAS, the Nifty 50 index is expected to see a lot of activity on expiry day, with many analysts expecting the index to break out of its tight range. The report also suggests that the index could see a lot of buying activity, which could lead to a rally.
Despite the expectations of volatility, analysts are advising investors to be cautious and watch for a breakout. The Nifty 50 index has been hovering around the 25,000 mark for quite some time now, and a breakout above this level could lead to a rally. However, a breakdown below this level could lead to a decline.
In conclusion, the Nifty 50 index is expected to see volatility on expiry day, as the index remains within a tight range. Analysts are advising investors to be cautious and watch for a breakout, as a breakout above the 25,000 level could lead to a rally. However, a breakdown below this level could lead to a decline.
