FIIs sold Nifty worth Rs.5,283 cr and Rs.238.54 cr in Bank Nifty.
- FIIs’ net long position is at 8.6%, reduced from 10.11% to 8.6%.
- VIX: 10.60 (+6.53%).
- PCR: 0.50 (deep oversold zone).
- FIIs sold Rs.3,367 cr in the cash segment, Rs.5,287.80 cr in index futures, and Rs.3,270 cr in stock futures.
DIIs bought Rs.3,701.20 cr. - Open Interest Position:
A. FIIs bought 331 lots and created 31,406 lots of shorts.
B. DIIs covered 3,784 lots and created shorts in 369 lots.
C. Retail clients created long positions in 12,950 lots and created shorts in 2,509 lots.
D. Pro traders created 23,191 lots on the long side and created shorts in 1,596 lots.
Note: FIIs’ net long position has further reduced to 8.6% from 10.11%. In the last two days, FIIs have reduced net longs from 12.88% to 8.6%, i.e., a sharp reduction of 4.28%, with huge short positions being created.
The data indicates that FIIs’ net long position is now in a highly oversold zone. PCR is at 0.50 and VIX has risen to 10.60%. As expected, FIIs’ positioning has reduced to around 8.5%, which was highlighted in our post last night. Normally, FIIs start covering their short positions around the 8–7% zone. In the last quarter, FIIs’ net long position had even gone down to 5% on one occasion.
Nifty continues to trade in a broad range of 25700–26300 and is now approaching an important support zone. Any further dip of 150–170 points will act as a very strong support area.
If Nifty dips another 150–170 points, FIIs’ net long position may come down to the 7–6.5% zone, and mark my words, a massive short-covering rally could take Nifty back towards the 26130–26227 zone.
We will not sell anything in panic, except the stocks already recommended for exit.
As far as intraday levels are concerned, …
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