FII shorts highest since March 2025. How to trade Nifty now
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Foreign institutional investors have built their largest index futures short positions since March 2025, pushing the long–short ratio close to record lows. However, a sharp rise in index futures longs on a non-expiry day signals potential short covering ahead, setting the stage for heightened volatility and tactical trading opportunities in the January series. Edited excerpts from a chat with Anand James, Chief Market Strategist, Geojit Investments: Nifty ended the week flat, but on Monday, the market would react to earnings of heavyweights like RIL, HDFC Bank and ICICI Bank. What are the key levels to watch out for? Our eyes are on 26,020 as the near-term objective, encouraged by a parallel consolidation bias since 9th January, apparently putting a pause to the downside spree that has been on since the start of this year. However, the systematic uptick in VIX, albeit small, suggests that volatility expectations are rising, and hence it w...