Rebounding from the lows of more than a year, Indian indices ended higher on Tuesday, tracking strong opening of European markets coupled with buying interest in the beaten down but fundamentally strong stocks. Sentiments of the investors remained upbeat after Finance Minister said that the economy is in a revival phase and hint that it will clock a growth rate in excess of 8 per cent in 2015-16.
Nifty future contract expiring on 27th Aug 2015 grew 1.15percent or 89.85pts to close at 7896.20, with premium of 15.5points and open interest decreased by 17.04percent. On daily charts, Nifty has made a 'gravestone doji candle with long lower shadows, highlighting the emergence of supportive buying from the lower levels.
The index is highly oversold in current scenario and quick short covering is expected in the market. So, traders are advised to cover their short positions and use every correction to build fresh long positions. At the same time, index traded and closed below the huge bearish gap of 165points (8225-8060) opened on 24th August, confirming it as its immediate technical resistance.