Markets expected to trade range bound with neutral bias - AXIS DIRECT

Nifty slumped on political worries caused by DMK's decision to withdraw support to UPA government, a statement from RBI saying, that the headroom for further monetary easing remains quite limited and after the ECB warned Cyprus that it will cut off emergency funding for Cyprus's troubled banks if Cyprus doesn't seal a bailout deal by Monday.

Nifty finally closed at 5668 with 229 points loss on weekly basis. Nifty futures closed with 17 points premium compared to 24.5 points premium of previous week. Nifty futures witnessed decrease in price by 3.88% with 3.96% increase in open interest along with 2.82% increase in volumes.

FII's were net sellers in Index futures to the tune of 2313 Cr and were net sellers in Index options to the tune of 2220 Cr. FII's net sellers in derivatives to the tune of 4164 Cr and derivative segment saw 27.99% increase in turnover in terms of rupees as compared to previous week.

Nifty witnessed increase in open interest with decrease in price along with relatively higher volumes on weekly basis indicating built-up of short positions. Markets are expected to trade range bound with neutral bias. Nifty may find support around 5610 followed by 5550 levels while 5740 followed by 5800 may act as resistance.

Source : Equity Bulls

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