In a special edition of Editor’s Take, Zee Business Managing Editor Anil Singhvi pointed out that in order to improve the short coverings of foreign institutional investors (FIIs), a trigger from global markets would be needed as we are approaching May expiry. 

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The FIIs index position increased to 61 per cent, and they are not that short as they were 10-15 days before, Singhvi said referring to Friday’s market data. “FIIs data perhaps looking lucrative but there is no mood into it now. It should have been attracted when it was bad, as that was the right time to buy.” 

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The market guru added, there is very little space now for short covering, and even if we see any then it is between the levels of 60-62 and 70-72 per cent, wherein FIIs long position could be curbed. 

After crunching 15 months’ data, it’s obvious that FIIs which were strolling their long positions at around 40-42 per cent would try to recover to 70 per cent, Singhvi mentioned. 

Citing out two reasons, Singhvi said, with the support of strong global markets, possibly, FIIs may cut their short and would go till 70-72 per cent in the next few days as it being an expiry week, and due to this we may see 200 points increase in Nifty, which is no big deal. 

In another instance, he added, if global markets don’t support, we may see some unwinding in the current long position of FIIs.  

The market guru added, “We are at an interesting mac and break level. If we only see Friday’s data, then you would say this one of the best data in the last 15 days.” 

On Friday, FIIs did a buying of Rs 510 crore in cash and Rs 10 crore in F&O, while DIIs did a buying of around Rs 650 crore in cash. Moreover, FIIs bought Rs 1481 crore in Index Futures and sold around Rs 1000 crore in Stock Futures.