Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
The Nifty 50 index managed to snap a three-day losing streak on Wednesday, ending marginally higher. However, the rebound did little to alter the broader technical picture as the index remains within a tight 24,500 to 25,200 range. This has led analysts to predict a high degree of volatility on expiry day, with many advising investors to watch for a breakout.
The Nifty 50 index has been stuck in a rangebound pattern for several weeks now, with prices oscillating between 24,500 and 25,200. While the index has managed to briefly breach these levels, it has failed to sustain the gains, leading to a sense of uncertainty among investors.
Analysts attribute the rangebound movement to a lack of clear direction on the global front, as well as the absence of fresh triggers in the domestic market. “The market is waiting for some direction from the global front, particularly from the US-China trade talks,” said a market expert. “Until then, we can expect the Nifty to remain rangebound.”
The expiry of derivatives contracts is also expected to add to the volatility, with many analysts predicting a high degree of activity on Wednesday. The options and futures contracts are set to expire, which could lead to increased trading activity and higher volatility.
“We expect volatility to increase on expiry day, particularly in the options segment,” said a senior analyst at a leading brokerage firm. “Many traders will be looking to roll over their positions, which could lead to increased activity in the market.”
The Nifty 50 index has been trading within a narrow range for several weeks now, with prices oscillating between 24,500 and 25,200. While the index has managed to briefly breach these levels, it has failed to sustain the gains, leading to a sense of uncertainty among investors.
Analysts believe that the rangebound movement is a sign of a lack of clear direction in the market. “The market is waiting for some direction from the global front, particularly from the US-China trade talks,” said a market expert. “Until then, we can expect the Nifty to remain rangebound.”
The absence of fresh triggers in the domestic market has also contributed to the rangebound movement. “There has been a lack of fresh triggers in the domestic market, which has led to a sense of uncertainty among investors,” said a senior analyst at a leading brokerage firm.
However, analysts believe that the rangebound movement could be a buying opportunity for investors. “The Nifty is trading at a discount to its historical averages, which makes it an attractive buying opportunity,” said a market expert. “We expect the index to break out of its rangebound movement in the coming weeks.”
In conclusion, the Nifty 50 index remains rangebound, with prices oscillating between 24,500 and 25,200. Analysts expect volatility on expiry day and advise watching for a breakout. The rangebound movement is attributed to a lack of clear direction on the global front, as well as the absence of fresh triggers in the domestic market. However, analysts believe that the rangebound movement could be a buying opportunity for investors.
