FIIs in 'PANIC buying' mode on Wednesday, Anil Singhvi says; calls it positive, expects some short covering on Thursday

Foreign Institutional Investors (FIIs) on Wednesday came back with a bang indulging in a buying spree in cash and futures markets. How will this play on Thursday’s trading session? Zee Business Managing Editor Anil Singhvi calls this a positive turn of events. He gives the complete picture saying that there could be fresh buying at lower levels along with some short covering

FIIs in 'PANIC buying' mode on Wednesday, Anil Singhvi says; calls it positive, expects some short covering on Thursday
The FIIs invested Rs 2089 cr in cash market and Rs 4435 cr in the Futures and Options (F and O). They bought Index futures worth Rs 1372 cr while stock futures worth Rs 800 cr, the Market Guru said
Written By: ZeeBiz WebTeam
Edited By: Harish Dugh
Updated: Thu, Mar 04, 2021
10:39 am
New Delhi, ZeeBiz WebDesk
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Foreign Institutional Investors (FIIs) on Wednesday came back with a bang indulging in a buying spree in cash and futures markets. How will this play on Thursday’s trading session? Zee Business Managing Editor Anil Singhvi calls this a positive turn of events. He gives the complete picture saying that there could be fresh buying at lower levels along with some short covering. 

The FIIs invested Rs 2089 cr in cash market and Rs 4435 cr in the Futures and Options (F and O). They bought Index futures worth Rs 1372 cr while stock futures worth Rs 800 cr, the Market Guru said. Meanwhile, the Domestic Institutional Investors (DIIs) bought equities worth Rs 393 cr. The FII buying after some pause is a positive sign, SInghvi said.  

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In terms of size, the Wednesday numbers are the strongest over the past few days. Singhvi said the data suggests that there was a “panic buying” by FIIs in the last half-an-hour of the Wednesday trading session. 

The open interest has fallen in index futures and stock futures. This is a clear-cut indication that the short covering has increased. There is a comfort factor now that the FIIs have resumed the buying activity.

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There was a big short covering just before the day of weekly expiry on Thursday, the Managing Editor said.  

Though, it is a bit difficult now to trust the FII action considering the activity over the pas 5-7 trading sessions, he said. So one should not take very high comfort from the data, he said. Today is a new dy and a new trading session, he opined.  

There could be small short covering today he said. He further said that the investors and traders must realise that there is nothing big that has spoilt the current Global market sentiments. 

He said that the traders are advised to trade for small gains.

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