Indian indices tanked on Friday, marking their lowest close in more than two months, as traders fret over the health of the world economy with China mired in a steep slowdown, while tumbling currencies and commodities exasperate investor fears, prompting a flight from equities. Nifty future contract expiring on 27th Aug 2015 fell 0.87percent or 73.7pts to close at 8306.35, with premium of 6.4points and open interest increased by 11.19percent.
On daily charts, Nifty has made a 'dragon fly' doji candle with long lower shadow, which indicates that traders had covered most of their intraday short positions and no fresh short positions were created today.
Meanwhile, index traded and closed below the huge bearish gap of 38points (8360-8322) opened today, confirming it as its immediate technical resistance. 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, on closing basis.