Markets to open negative, but remain volatile on expiry

As stated earlier the Indian markets opened higher, hit new highs but retreated to trade lower and again bounced back to close marginally up. On the whole, the session remained volatile as expected ahead of expiry. The defensives Pharma and FMCG dragged while PSU Banks and Media surged the most. Nifty closed at 8615 with 0.29% upside; while Sensex closed at 28024 with 0.17 per cent upside.

The much awaited FED meet kept the rates unchanged but clued towards further tightening anytime during the year. Stronger jobs and housing data in June have suggested a boom in the economy. Thereby the rate hike may take place provided inflation achieves 2% of the Central Bank’s target.Thereby WTI crude rebounded for a while. Dow and S&P500 tumbled 1.5% and 2.6 % respectively while Nasdaq surged 0.6%.

Europe gained after specifically the automobile makers surged on positive quarter earnings and BOJ stimulus hopes. Germany’s main index DAX closed 0.39 per cent up at 10287; while France’s CAC40 closed positive with 1.2 per cent gains at 4447. Meanwhile, Britain's FTSE 100 closed 0.39 per cent up at 6750.

Asian markets remained mixed with corporate earnings volatility and ahead of BOJ policy review. Nikkei retreated from prior gains with 0.7% losses. Hang Seng is trading marginally down with 0.3% losses. The Shanghai Composite index is flat. Australia’s S&P/ASX 200 Index is up at 0.4%; while New Zealand’s S&P/NZX 50 is 0.18% down. South Korea’s KOSPI is marginally negative with 0.35% change.

Markets may remain volatile to negative tracking July F&O expiry. Markets may see some recovery thereafter. SGX Nifty index future for July series is trading flat at 8612.50 levels. On July 28 we have major stock results viz., Punjab National Bank and Syndicate Bank to watch out for.