Nifty finishes May F&O series 82 points lower; what to expect in June series

The Nifty 50 benchmark ended the May derivative series with a loss of 82 points as against the prior month wherein it recorded gains of 243 points. The bluehip index in the run-up to the six-week long polling process gave up sizeable gains as nervousness around the election outcome mounted.

After registering a new peak of 23,110.8 on May 27, the index has come down a sharp 2.66 per cent considering today’s lowest point.

Furthermore, what’s worth noting, we are beginning the series with just 13 per cent FII long exposure, the lowest since April 2023.

May Series Gainers & Losers

Last year, there was a record gain of 2 per cent in the Nifty index in June series as the effective date for merger of HDFC & HDFC Bank was declared.

Outlook for June F&O series

Zee Business Managing Editor Anil Singhvi noted that historically over a ten year period, Nifty’s performance has been positive 7 times. And continuing with the trend, the low FII index long position supports the upmove again this time which is at just 13 per cent. On  a net basis, the FIIs net long position is at 7 per cent, while net short is 45 per cent.

Singhvi added that the low FII position in the index ahead of the key Lok Sabha elections 2024 outcome is positive and will likely push the markets higher by a good quantum. Further, in case the poll outcome remains on expected lines, there can be big short covering.