Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
The Indian stock market has been experiencing a rollercoaster ride lately, with the Nifty 50 index struggling to break out of its tight range. On Wednesday, the index managed to snap a three-day losing streak, ending marginally higher, but the rebound did little to alter the broader technical picture. As we approach expiry day, analysts are warning of increased volatility and advising investors to keep a close eye on the market for a breakout.
The Nifty 50 index has been stuck in a tight range of 24,500 to 25,200 for quite some time now, with the index unable to breach the upper or lower end of the range. This lack of direction has led to a sense of caution among investors, with many opting to stay on the sidelines until the market breaks out of its current range.
Analysts at SEBI-RAS, a leading market research firm, believe that the Nifty 50 index is likely to experience increased volatility on expiry day. “The market is likely to be highly volatile on expiry day, with investors looking to book profits or make fresh purchases,” said an analyst at SEBI-RAS. “We expect the index to be highly range-bound, with prices consolidating within the current range of 24,500 to 25,200.”
The analyst attributed the expected volatility to the fact that the market is approaching expiry day, when investors typically look to unwind their positions and square off their books. “This can lead to increased trading activity, which in turn can lead to increased volatility,” the analyst added.
Another analyst at a leading brokerage firm echoed similar sentiments, saying that the market is likely to be highly volatile on expiry day. “The Nifty 50 index is likely to be highly range-bound, with prices consolidating within the current range of 24,500 to 25,200,” said the analyst. “We expect the index to be highly volatile, with prices moving sharply in either direction.”
Despite the expected volatility, analysts are advising investors to stay calm and not get caught up in the excitement of expiry day. “It’s important for investors to stay calm and not get caught up in the short-term volatility,” said an analyst at a leading investment firm. “The Nifty 50 index is likely to remain range-bound, with prices consolidating within the current range of 24,500 to 25,200.”
The analyst added that investors should focus on taking a long-term view and not get caught up in the short-term volatility. “The Nifty 50 index is likely to remain range-bound for the foreseeable future, with prices consolidating within the current range of 24,500 to 25,200,” the analyst said. “We expect the index to break out of its current range eventually, but in the meantime, investors should focus on taking a long-term view.”
In conclusion, the Nifty 50 index is likely to experience increased volatility on expiry day, as investors look to unwind their positions and square off their books. Analysts are advising investors to stay calm and not get caught up in the excitement of expiry day, and to focus on taking a long-term view. The Nifty 50 index is likely to remain range-bound for the foreseeable future, with prices consolidating within the current range of 24,500 to 25,200.
