Why signals from FIIs are neutral today? Here is what Anil Singhvi has to say
Speaking on the topic of why signals from Foreign institutional investors (FIIs) are neutral today (Thursday, May 6), Zee Business Managing Editor Anil Singhvi has said that they have done selling to the extent of Rs 1,111 crore in the cash market. FIIs have been selling stocks continuously for the last five days. However, now an indication for a pause in selling has come, he added.
Speaking on the topic of why Foreign institutional investors (FIIs) are neutral today (Thursday, May 6), Zee Business Managing Editor Anil Singhvi has said that they have done selling to the extent of Rs 1,111 crore in the cash market. FIIs have been selling stocks continuously for the last five days. However, now an indication for a pause in selling has come, he added.
Explaining how and why, Singhvi said that stocks worth Rs 1,111 crore have been sold in cash and stocks worth Rs 722 crore have been bought in futures. This means that the net selling has been worth Rs 400 crore.
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He said that if we consider the run rate of a few days earlier then the selling of Rs 400 crore is minimal. Secondly, FIIs have stopped selling index futures and have purchased index futures worth Rs 9 crore.
The market expert further revealed an interesting fact and said that people may think that this Rs 9 crore is not much but if you observe the details then you will notice that FIIs have reduced their growth position in index and have also reduced the falling position.
FIIs के संकेत आज न्यूट्रल क्यों?
आ चुके हैं FIIs की बिकवाली रुकने के संकेत !
PCR से कैसे हैं संकेत?
— Zee Business (@ZeeBusiness) May 6, 2021
This means that they have reduced their long and short positions with the same pace, he added and have become neutral on the index and stocks.
He said that traders are ready to buy and have turned positive. The market is ready to grow if the FIIs turn neutral and stop selling. However, FIIs have only turned neutral, they will also have to become positive, he added.
He said that FIIs long position index is at 52 percent and have been at a position of around 53-52 percent for the last three days.
The Market Guru said that the mood of the FIIs is either not good or they think that Nifty will come to the 13,500-13,700 mark. He said that the historic lowest long position of FIIs is not yet seen and even if any sudden development comes related to coronavirus and Nifty comes to the level of 13,500-13,800 this is also not seen.
Hence he said that if FIIs long index position is around 52 percent then it is less and it needs to increase. He said that now that selling has stopped, we need to watch if the buying begins from today, in coming 1-2 days or next week.
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