An hour into the opening on Monday, the Indian market was trading lower by more than half per cent amid volatility. The benchmark Nity50 slipped below 16,600 to 16,586.50 in early trade, while the Sensex dropped around 450 points to slip to 55,611.19. At 10.20 am. The headline indices were trading at 16,618 and 55,752.13 respectively.  

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Following benchmarks, Nifty Midcap dropped nearly 0.70%, while smallcap indices too came under selling pressure as the index declined around 0.30% in Monday's intraday trade.  

The volatility in the market was fanned out by q1 earnings and FOMC meet this week on July 27. 

On the sectoral front, except for Nifty Metal, all indices slipped in the red. Nifty Oil & Gas and Pharma led the decline in sectoral indices with more than one per cent cuts. 

"This week is going to be an event heavy, therefore, we can expect a spike in volatility. The market will react to 30% of Nifty's earnings on Monday morning because we have results of Reliance, ICICI Bank, Kotak Bank, and Infosys over the weekend. Apart from this, many Nifty50 companies will announce their Q1 earnings during the weekdays," said Santosh Meena, Head of Research, Swastika Investmart Ltd. 

We will also have July month F&O expiry on Thursday, which may also lead to volatility in the overall market, the expert said.  

"On the global front, the US FOMC meeting outcome on 27th July will be the most crucial event and the movement of the dollar index and crude oil prices will be other important factors," the expert had said in his weekly outlook for this week 

Earlier, certain stocks came in focus on Friday. These stocks were Gujarat State Fertilizers & Chemicals, MOIL and Sheela Foam.  

Here is what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, suggests investors should do with these stocks. 

GSFC: 

The stock rallied over 17 percent on July 22nd. On Friday, the stock opened with a gap up and post strong opening it held the positive momentum throughout the day. The short-term texture of the stock is still on the bullish side but due to the temporary overbought situation we could see some profit booking at higher levels. for the bulls now, 175-180 would act as an immediate resistance zone. On the flip side 155-150 could be the key support levels for positional traders. Buying on dips and selling on rallies could be the ideal strategy for the positional traders. However, below 150 uptrends would be vulnerable. 

MOIL: 

Last Friday, the stock witnessed a promising intraday 9 percent intraday rally. On the daily and weekly charts, the stock has formed a long bullish candle and after a long time it succeeded in closing above the 155-mark. The texture of the pattern suggests a breakout action will continue in the near term if stock succeeds to trade above 155 level. For the trend following traders 155 would be the key level, trading above the same we can expect uptrend continuation wave up to 170-175. On the flip side, below 155, traders may prefer to exit out from trading long positions. 

SFL: 

After a long correction, eventually the stock took the support near 2550 and reversed. Post reversal, the stock is holding higher bottom formation. Last Friday, the stock rallied over 5 percent and it also formed a long bullish candle on the daily and weekly charts. In addition, it not only cleared the 50-day SMA level, but succeeded in closing above the same, which is broadly positive.  A promising price volume activity near 50-day SMA (Simple Moving Average), indicating a further uptrend from the current levels.  For the positional traders 2700 would be the sacrosanct level, trading above the same we could expect an uptrend continuation wave till 3000-3075. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)