Nifty declines for second consecutive week - AXISDirect

Nifty declined for the second consecutive week as recent selling by FII spoiled investors sentiments. Political uncertainty in India also spooked investors. Major weakness in Indian equities was seen on Friday, when shares of Infosys slumped after company issued tepid revenue growth guidance for the year FY-2013-14.

Nifty finally closed at 5535 with 37 points loss on weekly basis. Nifty futures closed with 6.6 points premium compared to 18.8 points premium of previous week. Nifty futures witnessed decrease in price by 0.66% with 1.87% increase in open interest along with 15.15% decrease in volumes.

FII's were net sellers in Index futures to the tune of 692 Cr and were net buyers in Index options to the tune of 1689 Cr. FII's net buyers in derivatives to the tune of 3091 Cr and derivative segment saw 24.99% 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 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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