Market Outlook: Anil Singhvi hails domestic investors and says this about FIIs

In a special edition of Editor’s Take, Zee Business Managing Editor Anil Singhvi today, lauded the strength of domestic traders and retail investors for their role in holding the markets up. The Market Guru also decoded Foreign Institutional Investors (FIIs) long positions and short covering. 

Singhvi said that the FIIs have increased their long positions to 58 per cent in the last two trading sessions as compared to 40-45 per cent last week, which was reduced in mere three days. The breakout of 15000 in Nifty is because of this increase in long position of global investors. 

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FIIs have bought Rs 3076 crore in Index Futures, which is not only a spectacular short covering but also indicates fresh buying, says Singhvi, adding further, that after a long time, there has been buying from FIIs in Index Stocks of as much as Rs 600 cr, however, they have sold around Rs 950 crore in Stocks Futures. 

He says, when the FIIs data was bad, it wasn’t worrisome but now, when it’s improving, it is a bit concerning. While giving a reason, Singhvi explained that FIIs have cut their short covering and PCR is at around 1.40 and their Index long positions are around 58 per cent. 

बदला FIIs का मूड, आई खरीदारी

अनिल सिंघवी- FIIs की इंडेक्स में खरीदारी से कॉन्फिडें, अभी खरीदारी करने की और गुंजाइश...

FIIs खरीदारी न करें तो भी चलेगा लेकिन बिकवाली भी न करें...#EditorsTake #FIIs #Investment @AnilSinghvi_ pic.twitter.com/O2wJ0m75Cd

— Zee Business (@ZeeBusiness) May 19, 2021

He added that this data doesn’t give comfort, because they may do heavy short covering as even now buying option is still available. On an average, FIIs don’t stop at 58 per cent long and reports suggests they have breached 70 per cent mark too. 

The Market Guru further says, now only time will tell, what would FIIs do, will they reduce their long position by touching 60-62 per cent and take reversal or will they go beyond 70-72 per cent mark? 

Singhvi adds, Indian markets are okay even if global investors don’t buy, but they shouldn’t get into selling as that would adversely affect them. He adds, so far our domestic traders and retail investors have rightly handled the situation in the market and kept a tight hold over it.