Nifty may find support around 5980 - AXISDIRECT

Nifty edged lower after RBI announcing a reduction of its key policy lending rate by 25 basis points after a monetary policy review on 29 January 2013 signaled that there is less room for aggressive policy rate cuts amid any negative surprise emanating from inflation and the twin deficits.

Nifty finally closed at 6036 with 38 points loss on weekly basis. Nifty futures closed with 37.2 points premium compared to 0.9 points discount of previous week. Nifty futures witnessed decrease in price by 0.62% with 4.98% increase in open interest along with 60.84% decrease in volumes.

FII's were net buyers in Index futures to the tune of 409 Cr and were net buyers in Index options to the tune of 3952 Cr. FII's net buyers in derivatives to the tune of 4361 Cr and derivative segment saw 26.7% increase in turnover in terms of rupees as compared to previous week.

Nifty witnessed increase in open interest with marginal decrease in price along with relatively lower volumes on weekly basis indicating built-up of short positions. Markets are expected to trade range bound with mild bearish bias. Nifty may find support around 5980 followed by 5920 levels while 6080 followed by 6120 may act as resistance.

Source : Equity Bulls

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