Anil Singhvi decodes key levels of FIIs are Buying and Selling; EXPLAINED
Zee Business Managing Editor Anil Singhvi said that just Net Buying by FIIs will not help restore confidence in the markets. While the numbers are good, Singhvi said one needs to understand them in detail. FIIs are extremely smart as they know how to invest and grow their money manifold
Zee Business Managing Editor Anil Singhvi said that just Net Buying by FIIs will not help restore confidence in the markets. While the numbers are good, Singhvi said one needs to understand them in detail. FIIs are extremely smart as they know how to invest and grow their money manifold.
Singhvi said he is looking at data of FIIs from a different point of view these days. The pattern that is noticeable is that they are buying when markets reach a certain point and start selling when the market reaches a specific level.
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Singhvi said at Index levels, FIIs start selling when Nifty reaches 14800, 14900 and 15000 levels and they start buying below 14500.
खरीदारी के मूड में लौट FIIs !
ये खरीदारी कितनी भरोसेमंद?
FIIs किन लेवल्स पर करते हैं खरीदारी और बिकवाली?
— Zee Business (@ZeeBusiness) April 16, 2021
Singhvi said it is also important to understand their long positions on the Index. So, when FIIs reach 70% of Index large positions, they start selling and they start buying when index positions reach below 60%. So, below 60%, in all probability, there would be good buying from FIIs and above 70% there would be heavy selling by them.
Singhvi said that inflows from FIIs are clearly indicating that markets are range bound. FII’s are not buying continuously and consistently. FIIs know that there are many good factors because of which markets won’t fall and some negative reasons which will ensure markets won’t stay at the top.
Singhvi said it is important to trade in range in the current market and keep churning the sectors which are seeing momentum either on the buy side or sell side. Traders should understand what they want to buy below 14500 and sell above 14800 – 14900. Trading in range and sectoral churning is important to understand, says Singhvi.
Singhvi said hedging is also important, in case there is excess hedging than one may see short covering and buying in markets. Also, when there are excess long positions in the markets, one may see profit booking or selling in markets. FIIs are precisely trading with this strategy, says Singhvi.
However, Singhvi said deciding on the basis of buy or sell figures of FIIs is not a good strategy at this stage. Based on the Index and position of FII’s in Index are 2 key important data pointers which helps to understand what FIIs are going to do in the market.
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