Markets Retreat again Ahead of Expiry

Markets Retreat again Ahead of Expiry

retreat

Market overview: 26th August 2015
With just one day left for the August Derivatives expiry markets saw intraday volatility and closed lower at the end. Markets were trading higher tops higher bottoms, hit the intraday highs and then saw a gradual slowdown where both Nifty and SENSEX closed more than a percent down.
Markets gave up previous intraday gains as investors remained cautious ahead of the fear that rate cut would not be enough to stabilize the economic conditions and boost Chinese stocks.
Rupee bounced back from the previous low but still down at 66.13/ Dollar. The dollar traded lower as against the euro and yen in early Asian trade.

Nifty closed at 7791 i.e. down 89 points while SENSEX closed at 25714 i.e. down 317 points from the previous close. Smallcap remained positive and closed with 0.29% gains. Midcap was weak but outperformed the benchmark indices with 0.27% losses. Market Breadth remained negative with 1279 Advances and 1368 Declines.

Among sectors Media surged the most with 1.1% gains. Apart from this Metal, PSE and Energy remained positive. On the other side PSU Bank tumbled the most with 2.7% losses. Pharma, Finance and Bank Nifty followed with more than a percent loss.
BHEL, Tata Power and Cairn were the top gainers while Tech Mahindra, Hero Motocorp and Ambuja Cements were the top losers for the Nifty.
Option Data
Highest OI was witnessed at 8000 CE & 8200 CE and 7700 PE and 7600 PE. As per options data 7600CE and 8000PE are likely to remain in focus for September series.
Global Updates:
U.S. markets turned back sharply after prior rally to close lower by more than a percent.
European main markets retreated again after prior surge and opened 2% down after Chinas slowdown fears.
Asian markets continued prior sell-off amid rate cut by China despite the Chinese government flushed 22 billion Dollars into the market. There was no respite to the sell-off.
Market Overview for 27th August 2015
Nifty ended lower but closed higher than previous low. Markets are likely to remain volatile again amid August F&O expiry. Hence, if Nifty continues to fall we hold 7665 as the support followed by 7600. On the contrary if markets tend to bounce back from here we hold 7930-7990 as the resistance in the first place.
Stocks to watch: Ashok Leyland and CEAT on the upside while Apollo Hospital and Hexaware on the downside.

 

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