Indian Indices tanked on Tuesday, marking their lowest close in more than a week, after European counters made a weak start with CAC and FTSE trading in red despite a US bounce back as investors tread cautiously in the wake of the Volkswagen emissions scandal and last week's decision by the US Federal Reserve to hold interest rates.
Nifty future contract expiring on 24th Sep 2015 fell 2.29percent or 183.05pts to close at 7797.10, with discount of 15.00points and open interest decreased by 7.06percent. On daily charts, Nifty has made a strong bearish candle reversing almost all the gains of previous five trading, indicating that traders prefer to book profit after a rally of 500 points (7500-8000).
Meanwhile, the index managed to close above its key short term moving average of 20DMA and the bearish breakaway gap of 19points (7948-7929) opened on 01st September, confirming it as its immediate support. On the higher side, 8100 would now act as immediate resistance, strength above the 8100 (lower band of huge bearish gap opened on 24th August) will signal continuance of the pullback towards 8280 in the short-term. However, possibility of quick short covering or sideways activity cannot be ruled out after a steep fall.