Nifty declines last week on fears RBI may not cut rates - AXIS Direct

Nifty declined last week on fears that the Reserve Bank of India (RBI) may not cut interest rates at its midquarter review of Monetary Policy 2012-13 on 19 March 2013, amid rising retail inflation. Weakness in global markets also dented sentiments.

Nifty finally closed at 5897 with 71 points loss on weekly basis. Nifty futures closed with 24.5 points premium compared to 22.6 points premium of previous week. Nifty futures witnessed decrease in price by 1.19% with 6.07% decrease in open interest along with 0.1% increase in volumes.

FII's were net sellers in Index futures to the tune of 465 Cr and were net buyers in Index options to the tune of 5406 Cr. FII's net buyers in derivatives to the tune of 4941 Cr and derivative segment saw 48.95% increase in turnover in terms of rupees as compared to previous week.

Nifty witnessed decrease in open interest with decrease in price along with relatively higher volumes on weekly basis indicating liquidation of long positions. Markets are expected to trade range bound with mild bearish bias. Nifty may find support around 5820 followed by 5760 levles while 5960 followed by 6020 may act as resistance.

Source : Equity Bulls

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