FPI Nifty Shorts Hit 277,164 Contracts as Analysts See 300-Point Rebound Risk
Updated
Updated · Mint · Jun 9
FPI Nifty Shorts Hit 277,164 Contracts as Analysts See 300-Point Rebound Risk
1 articles · Updated · Mint · Jun 9
Summary
277,164 FPI short contracts on Nifty and Bank Nifty futures left bearish positioning just 1,853 below the 27 March record, even as analysts said Indian equities may be nearing a bottom.
4.54% US 10-year yields and a sharp tech selloff have driven the caution, but that same pressure is now raising expectations of fund rotation into Indian large caps from overheated US, Korean and Taiwanese technology stocks.
23,123 was Monday's Nifty close, down 12% from the 5 January peak of 26,373.2, yet the index fell only 1.04% on the day versus much steeper drops in the Kospi and Taiex.
300 points is the immediate upside some strategists see if FPIs start covering shorts; a West Asia peace deal could amplify the move, with near-term trading ranges clustered around 23,000-23,800.
7.5% was Nifty's gain in April after FPI shorts dropped from 279,467 to 184,476 contracts, a reversal analysts cite as a template while FPIs have already sold a record $31.24 billion of Indian cash equities this year.