Nifty’s relief rally could extend to 22,900 but may not last long
2 weeks, 1 day ago

Nifty’s relief rally could extend to 22,900 but may not last long

Live Mint  

The recent rebound in India’s stock market could stretch by 1.4% in the short term, said market experts, although they warned about it being a mere bounce within a larger downtrend as foreign investors remain significantly bearish in the domestic cash and derivatives segment. In other words, FPIs still hold materially significant short positions on index futures—Nifty and Bank Nifty—and remain net sellers in the cash segment, which is what’s worrying analysts like Venkataraman. If that level is decisively broken, the market could see the rally extend through 23,500, thanks to buying by retail investors and reversal of FPIs’ bearish cash and derivatives bias, Agrawal said. According to Rohit Srivastava, founder, IndiaCharts, the current optimism in India’s stock markets was underscored by domestic institutional investors, including mutual funds and insurance companies, holding a record net long position of 56,274 contracts on index futures as of Thursday.

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