Nifty and Bank Nifty May Futures Overview

FII/FPI are the aggressive net sellers during the last week trading session. Last week Nifty futures had made a low of 8020.55 followed by a sharp reversal and the hourly charts is in prolong downtrend with the resistance zone comes around 8343.25. Currently the falling momentum suggests a possible weakness in the uptrend in the very near term. The huge sell off the happened in the last week was blamed on the high speed trading algos

Nifty Futures Hourly Charts

Bank Nifty Futures too made a sharp comeback after hitting the bottom low of 17324.2 and the hourly charts is in prolong downtrend. And the falling momentum suggests a possible weakness in the uptrend in the very near term.

Bank Nifty Futures Hourly Charts

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Indian Sectors – Relative Rotational Graph Study

RRG Study shows that Sector Weakness still everywhere. CNX Infra, FMCG, PSU Bank, Energy, Finance , Metals are likely to underperform CNX Nifty. CNX Auto and CNX IT could be a possible outperformer in the very near term upcoming sessions.

Open Interest Study

Open Interest Picture shows 8000PE and 8100PE are having the higher open interest built-up on the put side strike prices. And 8500CE and 8600CE are the highest open interest built-up seen in call side option strike prices. And still the higher open interest levels are at lower levels compared to the past historical data.

Economic Signals
– USDINR closed at 63.94 on Friday
– IIP (Industrial Production YoY) march figures likely to be released on 12th May 2015, 5:30p.m IST
– WPI Inflation data to be released likely on 13th May, 2015
– China cut the benchmark one-year term lending rate by 25 basis points to 5.1 percent and deposit rate by 25 basis points to 2.25 percent.