Zee Business Managing Editor Anil Singhvi on Friday said that the higher range for the market is 14850 – 15050 on Nifty. FIIs selling in the past few sessions indicate that traders need to be cautious, said the Market Guru. He said that above 15050, markets could head to new highs; else it would remain in the said range.

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Singhvi said that on Wednesday, FIIs did buying of Rs 10253 crore on Index options. He said that he was surprised to see such heavy buying. FIIs do this sort of heavy buying to do hedging in the markets. FIIs have sold for the past few sessions, but markets have not fallen sharply.

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Singhvi said that aftereffects of Covid-19 may impact the profitability of some companies for one or 2 quarters of FY22. Participants who believe this including FIIs are selling in the markets. FIIs have sold Rs 1261 crpre in cash markets; FIIs have sold Rs 555 cr in Index Futures and sold Rs 2500 cr worth stock futures. This shows Rs 4000 cr directional selling from FIIs. He said that at this stage it doesn’t look like markets are going to fall sharply. FIIs long position on Index may not fall to 18% to 20% like last March 2020.

Singhvi said that Index long position is 40% at this stage and FIIs may decide to start buying from here. Next 2 sessions are going to be crucial for markets. Since last March 2020, FIIs long positions have not been below 40% on Index for more than 3 days. Generally, market rebounds sharply and FIIs long position reaches 70% to 75%. If this happens, then markets may rebound sharply next week.

Singhvi said that next week is going to be make or break for the markets. FIIs index long position may fall down to 20% or rise sharply to 70% next week. He said it is important to focus on key levels where markets can move either side sharply.

Singhvi said that today’s session is going to be wait and watch. Next week could be crucial as markets may see strong recovery or may fall sharply. He said that participants should refrain from looking at SGX Nifty on holidays and worry about the markets. He said that it is important for participants to assess their risk appetite.