Indian indices ended the volatile session higher, marking their highest close of more than two weeks, traders remained on the sidelines on bets that the Federal Reserve will boost interest rates as soon as next month. Nifty future contract expiring on 27th Aug 2015 grew 0.26percent or 22.35pts to close at 8615.00, with premium of 26.35points and open interest increased by 1.37percent.
On daily charts, Nifty has made a high wave candle with long shadows on both sides, indicating that traders are nervous at higher levels. At the same time, negative slope of strength indicator RSI along with small size of daily candles suggest that current rally could be a sucker rally.
So, traders are advised to hold long positions with strict stop loss. Moreover, Medium term trend will remain positive till it is trading above the bullish breakaway gap of 6 points (8251-8257) opened on 22nd June, which would act as an immediate support zone.