On April 12, they squared off 16,699 long contracts while adding fresh shorts of 219 contracts amid a 3.5 per cent fall in Nifty to 14,310.8. Taken together with the fact that they’ve net sold a provisional Rs 3,094 crore in the cash market so far this month, this is a sign of “bearishness for now,” said Rohit Srivastava, founder, IndiaCharts.
The last time they were net short 5,078 index futures contracts cumulatively was on November 4 last year. Thereafter FIIs been net bullish index futures, with a peak of 91,355 contracts and trough of 10,948 contracts over November 5, 2020- April 9.
Over this period, Nifty has risen from 11,908 through 14,834.85, having peaked at 15,431.75 on February 16.
“A break of 14,298 could drag the index down to 13,597 and then to 12,430.5 levels,” said Vishal Wagh, research head at Bonanza Portfolio, who terms the market trend as “sell on rise”.
The 14,298 level is the 61.8 per cent retracement of the rally from the pre-Budget low of 13,596.75 through 15,431.75 on February 16.
Of the two benchmark indices, Bank Nifty has witnessed tremendous selling pressure. Immediate support for Bank Nifty lies at 30,500 and next at 30,000, as per weekly Index options.
