Nifty & FIIs Data Analysis for 6- Aug 2014

• FIIs sold 5272 contracts of Index Future (sold 2208 long contracts and 3064 short contracts were added) with net OI increasing by 856 contracts. FIIs were net sellers on today.

• As discussed in last write up – “Nifty has to break Friday’s high 7716.70 (Spot) to remain bullish in next session otherwise massive selling pressure is possible.”  And as nifty break these resistance shoot up. This upward momentum may continue ahead.

• Nifty has taken support at 20 days SMA and get bounced but trader has to be caution as FIIs are adding shorts when market is trying to test new high & booking profit in longs which suggest they (FIIs) are using high as a shorting opportunity & book profits.

• Nifty has resistance at 7796 – 7840 (Spot) & support levels comes at 7713 – 7690 – 7673 (spot).