Anil Singhvi decoder: FIIs' shock 'n awe November strategy to stay in December? Know what you must do now

FIIs shocked and awed everybody with their November strategy in India by deploying massive amounts of money in markets here. Records were broken. Zee Business Managing Editor Anil Singhvi says it is extremely important to understand the trend of the market and that is extremely strong on the upside. FIIs have been extremely bullish on Indian markets and participants have witnessed the same for the entire

नवंबर में FIIs की खरीदारी के क्या मायने और दिसंबर में कैसा रहेगा रूझान?

अनिल सिंघवी से समझिए...#EditorsTake #StockMarket #FIIs #Investment @AnilSinghvi_ pic.twitter.com/N7MJRPEGnE

— Zee Business (@ZeeBusiness) November 27, 2020

November series: 

In yesterday’s trade Rs 2000 cr buying was done by FIIs. DIIs sell number was Rs 3400 cr. In stock futures, FIIs had purchased around Rs 2500 cr which indicates there is short covering in the market. In cash market, FIIs have done huge buying for the entire November series. There is Rs 117 cr selling in the index due to unwinding of long and short positions in the market, which happens generally at the end of the series.

So, it is critical to understand that data for yesterday is not important, instead participants should try to analyze the trend and the trend is strong on the upside as indicated by FII buying numbers.
2 important things to monitor going forward: 

FIIs are already 77% long on index. So, important to monitor how much more buying they will do further.

After today’s closing MSCI Rebalancing will be done. It was expected that Rs 28000 to Rs 30000 buying would happen due to MSCI rebalancing. However, additional buying for Rs 25000 to Rs 30000 over and above MSCI buying indicates strong buying happened by MSCI during the month of November.

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What will FIIs do - Buy or Sell?

The Market Guru said now it is important to monitor whether FIIs will continue their buying spree from Tuesday next week or they are going to do some selling or reduce quantum of buying. Markets are going to make their move based on buying or selling done by FIIs. FII data will clearly dominate the market, if the buying continues strongly by FIIs than markets may rise further and if the reverse happens i.e. selling done by FIIs then market may fall or correct a bit from here and give up some gains going forward. FIIs data will be of utmost importance for the December 1st week to monitor.