What is your take on the market view for 29 July Thursday?

On Wednesday, there were wild swings in the Nifty. At one point the Nifty went as low as 15,500 but managed to bounce back and close just above the 15,700 mark. The Nifty has respected the range of 15,700 to 16,000 during this week and as long as 15,700 is not broker, we could see another attempt at 16,000 on the Nifty, sooner rather than later.

Thursday being the F&O expiry day, traders can logically expect enhanced bouts of volatility in the market due to the huge volumes and open interest in this F&O expiry. The VIX, or the volatility index, is also expected to go up sharply. If the Nifty holds 15,700 on Thursday, then the trend would be positive to attempt for the 16,000 levels.

Foreign investors continued to be net sellers to the tune of Rs.2,275 crore on 28 Jul over rising concerns pertaining to the F&O expiry on Thursday as well as the Fed policy statement. Fed was dovish overall, and that should help markets. Domestic institutions infused Rs921 crore but oil and dollar strength are really keeping the FPIs cautious.

While the Dow was down over 100 points on Wednesday, the NASDAQ showed strength and most of the European markets were also in the positive. The Nifty is likely to remain volatile due to the F&O expiry, but the key to watch is if the 15,700 levels on the Nifty are held. That would be a positive signal.