Nifty Futures Premium/Discount

The 30 day average of the Nifty futures continues to show a discount. The last time it was even near 100 points far more than the seasonal low due to dividends. Now it is less but it shows the lack of interest among buyers or that there are shorts carrying forward. The negative sentiment then is best reflected in this chart with the indicator back to near the lows. There was a bump up last month but it did not last. Sentiment indicators are contrarian indicators so extremes mean the opposite should be true. A low reading is over bearish sentiment and supports the bullish argument.