Expiry Day Volatility Seen as Nifty Remains Rangebound: Analysts
After a three-day losing streak, the Nifty 50 index managed to snap back on Wednesday, ending marginally higher. While the rebound brought some relief to investors, it did little to alter the broader technical picture. The index remains stuck within a tight range of 24,500 to 25,200, leaving analysts expecting volatility on expiry day and advising caution.
The Nifty 50 index has been trading in a narrow range for quite some time now, with the upper end of the range at 25,200 and the lower end at 24,500. The tight range has led to a lack of direction in the market, with investors struggling to make a move. The index has been fluctuating between the two ends of the range, without making a decisive move in either direction.
The recent rebound, while positive, did not alter the technical picture. The index is still stuck within the same range, and investors are looking for a breakout to gain direction. Analysts are advising caution, expecting volatility on expiry day, which could lead to a sharp move in either direction.
The expiry day volatility is likely to be driven by the positioning of traders ahead of the derivatives expiry. The derivatives expiry is a critical event in the market, as it can lead to a sharp move in the market. Traders may be looking to book profits or square off their positions, leading to increased volatility.
Analysts are advising investors to watch for a breakout from the range. A breakout above the upper end of the range could lead to a sharp move higher, while a breakout below the lower end could lead to a sharp move lower. Investors are advised to be cautious and avoid taking positions in the market until a clear direction emerges.
The Nifty 50 index has been trading in a range for quite some time now, and it is likely to continue to do so in the near term. The index is likely to be driven by the positioning of traders ahead of the derivatives expiry, and investors are advised to watch for a breakout from the range.
In conclusion, the Nifty 50 index remains rangebound, with analysts expecting volatility on expiry day. Investors are advised to watch for a breakout from the range, as it could lead to a sharp move in either direction. The expiry day volatility is likely to be driven by the positioning of traders ahead of the derivatives expiry, and investors are advised to be cautious and avoid taking positions in the market until a clear direction emerges.
