June Series - FII selling imminent over next 1-2 sessions, Anil Singhvi says; recommends risk management for intraday, overnight traders; chill pill for positional, long term investors

Zee Business Managing Editor Anil Singhvi says that FIIs understood one thing, that they had wasted May series by remaining bearish on the markets. Singhvi said that bears have cut their shorts drastically yesterday as well.

Singhvi said that the open interest on Nifty is 1 cr shares, which is at comfortable levels at this stage. He said that the rollover is 77% in June series compared to 66% in May series as there are more longs in the system or less shorts. Rollover on Bank Nifty has increased from 65% to 81%. This indicates that the Rollover on Nifty and Bank Nifty is extremely strong.

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Singhvi said that FIIs are going with highest ever long position on Index in June series which is at 89%. He said that FIIs Index long position on Index is so high because they did cover their shorts on the last day on May series yesterday. 

नई सीरीज की शुरुआत, FIIs हुए Overbought

अनिल सिंघवी- FIIs 10-15% कम करेंगे अपनी लॉन्ग पोजीशन, ऊपरी स्तरों पर सतर्क रहें...

इंट्राडे और ओवरनाइट ट्रेडर्स रिस्क मैनेजमेंट करके चलें, पोजीशनल ट्रेडर्स और निवेशक डरें नहीं#EditorsTake #FIIs #StockMarket @AnilSinghvi_ pic.twitter.com/SnJM1NFoAj

— Zee Business (@ZeeBusiness) May 28, 2021

The Market Guru believes that this position will reduce as FIIs remain long above 80% to 82%. The FIIs long position on Index can come down by 10% to 12%. There is good chance that markets could see some selling from FIIs at current levels. Singhvi said in 1 or 2 sessions there would be some selling by FIIs.

Singhvi said that FIIs must do proper asset allocation, balance their portfolio, and manage their long-short ratio.  FIIs must also go long on markets when their Index long positions come down to 40% and must sell when it goes above 80%.

Singhvi said that despite FIIs selling, markets didn’t see sharp fall in current Bull Run. FII selling has been absorbed by the markets. Investors need to be cautious at higher levels. Singhvi said that markets have moved from 14400 to 15400 levels, the rally has been one way without sizable correction.

Singhvi said that markets may fall by 200 to 250 points and the rally can resume again from there. He said that positional trader and long term investor need not need to worry. Intraday and overnight traders need to do their risk management. FIIs short positions are being squared because of which the markets have rallied sharply, if FIIs had been Bullish, they would not have been selling last full week.