The Foreign Institutional Investors (FIIs) have shown appetite for buying in the Indian cash and futures’ markets. On Tuesday, the FIIs indulged in decent buying activity. On the other hand, the Domestic Institutional Investors have continued to sell. How should the investors see this? Zee Business Managing Editor Anil Singhvi gives his take on the issue! 

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The Market Guru said that the FIIs are usually aggressive players and they adopt a strategy after taking a view of the market. However, the domestic investors are clear in their strategy and which is to sell on a growing market and buy in a falling trend. So, whatever happens around the Nifty 12,000 level, they are not likely to buy at all.  

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At around Nifty 7,500, the FIIs were the ones to sell while now when Nifty is trading around the 12000 mark, they are buying.  

His advice to traders is to follow short term trends in FIIs. As for the investors, Singhvi said that the DIIs should be followed. He said that the investors should put money when the domestic funds are buying while withdraw when they are selling. This is a pretty clear strategy, he further said.  

The domestic funds have sold around Rs 15,568 cr worth of shares over the last 15 trading sessions.  

It is a rare occasion when the DIIs have been involved in a fervent selling activity. A similar activity was observed in 2016 when the DIIs sold worth Rs 17,000 cr in 22 trading straight sessions from 1 March to 4 April. 

There is a clear-cut view made by the DIIs that they would not buy at levels around 12,000, the Managing Editor said. 

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Barring the Monday session, the FIIs have been on a buying spree. Even on Tuesday, they invested handsomely in Indian equities. They bought shares worth Rs 3514 cr on Tuesday while Rs 10,771 cr over the last six trading sessions, Singhvi further said. These are good signs, he maintained.