Volatitlity Ahead of Expiry

Closing Review: 28th July
It was a subdued opening of the week. Markets witnessed second consecutive profit booking session today. Nifty closed at 7748 i.e. 42 points down while SENSEX closed at 25991 i.e. 135 points from the previous close. Both Small cap and Mid cap indices too fell in line with the benchmark and closed with 0.82% and 0.31% losses respectively.
Rupee movement was flat around 60.06-60.13/USD levels.
Realty sector saw heavy selling and declined 3% followed by Metal, Media, Finance and Energy that declined below 1%. IT and Pharma sectors gained 0.51% and 0.19% in the last hour of trading. PSU Banks remained positive throughout the session.
HCL Tech, Hindustan Unilever and Cairn were the top gainers while DLF, BPCL and Coal India were the top losers for the Nifty. HUL surged after its Q1 results posted a net profit of 10.6 Billion Rs. as against 8.7 Billion Rs. with volume growth of 6%. On the other hand decline in Coal India was driven by the E-Auction limit that has been reduced by the Coal Ministry to 25MT as compared to 58MT last year..

Option Data
Highest OI was witnessed at 7800CE & 7700CE and 7750PE and 7600PE. As per options data 7800 CE and 7750 PE are likely to remain in focus for July series.
8000 CE and 7700 PE are likely to remain in focus for August series.

Global Market
Sharp correction was seen in the US markets on Friday where indices lost nearly 0.75 to 1%. Asian Shares remained stronger with Hangseng gaining 0.88% and Nikkei225 gaining 0.46%. Japan will have its economic data release and handful of important stock results in the coming days. China data and US Fed Reserves Monetary Policy will also be in focus.
Europe stocks opened positive with positive Q1 earnings data but could not sustain their as European union has decided to put sanctions against Russia and this may harm the investment outlook.

Market Overview for 30th July
We are heading towards F&O expiry with a festive holiday in between. During this shortened weak markets are expected to remain volatile and vulnerable to the global data that is expected flowing in.
We had talked of 7740-7700 as the support if fall continues. Likewise Nifty has fallen up to 7720 levels. If we witness a further fall our next support will be 7700-7680. If Nifty bounces back from here considering it as a pullback we might see some optimism only above 7750-7800 if Nifty breaks 7760 on the upside.

Stocks to watch out for: Ahmednagar Forgings, Dr Reddy on the upside and Axis Bank and Reliance on the downside.