Significant short positions by FiIs have historically been followed by positive returns in the Nifty 50 index. Also the current FII short position may create bottom for the market
What is covered in the Full Insight:
Narratives in Financial Markets
Impact of FII Short Positions in the Indian Market
Tracking FII Long-Short Positions
Understanding Historical Trends
Conclusion and future insights
Boomeranged on Tue, 28 Jan 2025 23:21
As FII short positions in Jan-25 reached to highest levels since May-24, it is important to revisit our old analysis which concludes why high short positions by FIIs create a floor for the markets preventing further downside.