Nifty witnesses increase in open interest with decrease in price - AXIS Direct

Nifty edged lower in the week ended Friday after a private survey showed growth in the services sector hit 17-month low in March 2013. Market declined in three of five trading sessions in the week. The S&P BSE Mid-Cap and the S&P BSE Small-Cap indices outperformed the Sensex during the week.

Nifty finally closed at 5572 with 111 points loss on weekly basis. Nifty futures closed with 18.8 points premium compared to 31.7 points premium of previous week. Nifty futures witnessed decrease in price by 1.94% with 6.24% increase in open interest along with 14.39% decrease in volumes.

FII's were net sellers in Index futures to the tune of 3093 Cr and were net buyers in Index options to the tune of 4066 Cr. FII's net buyers in derivatives to the tune of 1981 Cr and derivative segment saw 14.65% decrease in turnover in terms of rupees as compared to previous week.

Nifty witnessed increase in open interest with 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 negative bias. Nifty may find support around 5490 followed by 5440 levels while 5630 followed by 5700 may act as resistance.

Source : Equity Bulls

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