Indian indices ended the session on a negative note, hitting lowest level on one week amid weak global cues. Further, weakness in Asian stocks coupled with fears that a further depreciation of the rupee may delay an interest rate cut by the Reserve Bank of India (RBI) weighed on sentiment on the domestic bourses.
Nifty future contract expiring on 27th Aug 2015 fell 1.47percent or 125.35pts to close at 8380.05, with premium of 7.3points and open interest increased by 1.69percent. On daily charts, Nifty has made a strong bearish candle with little shadows, suggesting that bears are in commanding position in the current scenario.
Meanwhile, comparatively higher volume and negative slope of strength indicator RSI, highlights the build-up of bearish sentiments in the market. So, traders are advised to cover their long position and use every rise to build fresh short positions. 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.