FIIs sold 1225 cr in Nifty futures and bought Rs.297.63 cr in Bank Nifty.
- FIIs net long position is 8.10%
- VIX is at 9.83 (-2.29%)
- PCR is at 0.58
- FIIs bought Rs.1171.70 cr in the cash segment and sold Rs.1508 cr in index futures and Rs.835 cr in stock futures.
- Open interest position
A. FIIs covered 1291 lots on the long side and created shorts in 6514 lots.
B. DIIs bought 1081 lots on the long side.
C. Retail clients bought 2828 lots on the long side and covered shorts in 1030 lots.
D. Pros bought 2629 lots and covered shorts in 237 lots.
Note:
FIIs net long position is now at 8.10%, reduced further from 9.05%, another cut of nearly 1%. The question is whether FIIs will bring this position to zero or even negative. During COVID, FIIs net long was around 7.5%, and in the last swing low it was 5.5%. FIIs do not have much room to go further short; at best, another 2.5% reduction is possible, which implies a downside of roughly 200–250 points.
In my opinion, if the BOJ Governor delivers hawkish guidance, a fall towards 25500–25330 is possible. As of now, the major support zone lies at 25700–25680. If breached, 25525–25325 will open up.
Last time, from such low FII net long positions, the Nifty rallied 1000–1200 points. Hence, an opportunity may be building for one big trade.
A famous quote by Warren Buffett:
“Be fearful when others are greedy and greedy when others are fearful.”
Intraday levels:
A break below 25770 may drag the Nifty down to 25723–25675, SL 25820.
If the Nifty comes around 25651–25627, it will be a buying zone with SL 25590 and targets of 25723–25750.
Leave A Comment