The key domestic benchmark indices ended higher on Friday, marking its highest close in more than three weeks, mirroring positive cues from the global peers after Bank of Japan introduced negative interest rate regime at its policy meet in order to revive the ailing economy. Nifty futures contract expiring on 25th Feb 2016 grew 1.78 percent or 132.6 pts. to close at 7568.05, with premium of 5.5 points and open interest increased by 2.91 percent.
On daily charts, Nifty future has made a strong bullish candle which engulfs previous three trading sessions, highlighting the buildup of bullish sentiments in the market. On the lower side, Nifty future has immediate support placed at around 7380; if Nifty future managed to hold above the 7380 level in coming session then it can bounce back to 7680-7700 levels.
Further, index can extend its pullback rally in the next few sessions as index is languishing in highly oversold zone. Meanwhile, short term bias will remain negative till it is trading below the huge bearish gap of 46 points (7721-7675) opened on 07th Jan.