Indian Indices tanked to the lows of more than a fifteen months on Monday, mid weak cues from other Asian peers as metal stocks took a beating as China cut its economic growth rate for 2014. Nifty future contract expiring on 24th Sep 2015 fell 1.17percent or 89.95pts to close at 7575.50, with premium of 15.7points and open interest increased by 1.63percent.
On daily charts, Nifty has made a strong bearish candle for the second consecutive session, highlighting strong downward momentum. Meanwhile, the index traded and closed below the third bearish breakaway gap of 19points (7948-7929) opened on 01st September for the fourth straight session, confirming it as its immediate technical resistance.
Strength above the 7950 (recent pivotal high) will signal continuance of the pullback towards 8280 in the short-term. At the same time, the strength indicator RSI is exhibiting a positive divergence if compared with index value. So, traders are advised to their positions with strict stop loss.