Indian indices ended the volatile session on a negative note, after India's merchandise exports contracted for the eighth month running in July, registering a 10.3 per cent drop over last year. The trade deficit widened to USD 12.8 billion in July from USD 10.8 billion in June.
Nifty future contract expiring on 27th Aug 2015 fell 0.64percent or 54.65pts to close at 8488.05, with premium of 10.75points and open interest increased by 0.67percent. On daily charts, Nifty has made a small bearish candle with considerable higher volume, indicating that traders are shuffling their position from highly overbought stocks to oversold stocks.
At the same time, index has formed a long lower shadow suggesting that traders are using every correction to build fresh long position. So, traders are advised to use every correction to build fresh long position. 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.