FIIs’ futures selling hints at a deeper correction
On October 28, they were cumulatively net short 9393 contracts. This year itself , they've held cumulative net short positions of 45470 contracts (May 18), 35,904 (June 29) and a whopping 173,133 on March 6, preceding the collapse of Nifty to 7511...
In the past two years , on more than a couple of occasions markets tended to have topped when their cumulative net long positions on index futures were around 50,000-75000 contracts.
Mumbai: Foreign institutional investors (FIIs) have turned net sellers of index futures -- Nifty and Bank Nifty -- for the first time since September 24. Their stance suggests caution and probability of a deeper correction, said analysts.
On October 28, they were cumulatively net short 9393 contracts. This year itself , they've held cumulative net short positions of 45470 contracts (May 18), 35,904 (June 29) and a whopping 173,133 on March 6, preceding the collapse of Nifty to 7511.1 on March 24.
"It's possible there's more shorting to go and markets testing a crucial support of 11550, before a decisive move gets under way," said Rohit Srivastava, founder, IndiaCharts.
In the past two years , on more than a couple of occasions markets tended to have topped when their cumulative net long positions on index futures were around 50,000-75000 contracts.
For eg, on October 9 they were net long 65572 contracts, days before the market tested a high of 12025.45 (October 15). From there the market has fallen 2.5% to 11729.6 on October 28.
On June 3, 2019 , post the Union election outcome , their net longs totalled 64103 contracts and the Nifty topped at 12103.05, plumbing to a low of 10874.8 on August 30, 2019.
